Citic Telecom 1883 (18/02/2014)

Date Announced: 18/02/2014
http://www.aastocks.com/EN/News/HK6/01883/NOW.589624.html

Ticker: 1883 Citic Telecom 中信國際電訊 
http://www.aastocks.com/EN/LTP/RTQuote.aspx?&symbol=01883

Current/Target Price: 2.80 -> 3.21
Cut loss: N/A

Performance Justification:
- 1201 mil underlying profit (2.3x growth see notes below)
- First substantial debt repayment due in 2015

Risk profile:
- Underlying growth attributed to acquisition, core business actually reduced
- Long term debt increased 100%+
- Liquid stock
- Rumored to purchase Macau CTM could potentially send the stock up or down

Other broker recommendations:
Stanchart - $3.3
Db - $3

High: 3.28 Current: 2.58