Beijing letter communication is up 4.69% in the afternoon to get the high target price

Beijing Letter Communication (02342) June 24 low Drive high, afternoon high volatility, now reported 4.02, up 4.69%, more than 15 million Hong Kong dollar, the Chinese bank issued a report to raise its target price to HK $5.2 to maintain the buy investment rating. The bank believes that Kingshingtong's strong performance in the first half of 09 will benefit from China Unicom (00762) 's WCDMA Antenna orders and mobile (00941) wireless network coverage of business orders.　　It also refers to an unreasonable valuation discount for the shares of the stock. The bank is expected to increase its revenue from 72% to HK $1.437 billion in the first half of 09, with gross profit margins of 40%, slightly below 41.1% in the same period in 08. Due to the contribution of 3G products, 2G product profit margin pressure to a certain degree of relief. In addition, high-margin products such as RF unit (RRU) are becoming increasingly popular, particularly from mobile GSM and TD-SCDMA networks, because of the difficulty of locating base stations in urban areas. In the first half of 09, the net profit of Beijing Telecom will increase by 68% to HK $121 million.