贝莱德新一期中国电讯业报告（2012-02）Spend now, profits later?
We turn more cautious on the Chinese telecom services subsector as we believe the
recent switch to higher subsidies associated with more aggressive subscriber
acquisition strategies will raise the competitive ante and derail profit margins in
2012. Indeed, paying today for higher profits in 2013 and beyond has too many
question marks, in our view. We cut our estimates for the group and downgrade
China Unicom to 3-Underweight from 1-Overweight as we lower our 12-month price
target to HK$15. We retain our 1-Overweight rating on China Telecom with a
modestly lower price target of HK$5.10, and we keep our 2-Equal Weight rating on
China Mobile with a higher price target of HK$85.