[ET Net News Agency, 10 July 2020] Nomura lifted its target price for China
Communications Services (CCS)(00552) to HK$6.32 from HK$5.8 and maintained its "buy"
rating.
The research house expects China's 5G infrastructure roll-out to resume in 2H after a
short pause, as economic activity gradually picks up. The 3GPP (Third Generation
Partnership Project) recently announced the completion of 5G Release-16 standards, which
paves the way for accelerated 5G network construction.
Nomura thinks CCS is well-positioned in the 5G investment cycle as the leading
infrastructure service provider in China. Moreover, the company's efforts in business
diversification have started to bear fruits, as the non-telco business has become a strong
growth driver now. It expects the company to maintain an 11% earnings growth CAGR for
2020-2022. (KL)