China Automation Group (569 HK, HK$2.14) – Laggard in the offering

Sales increased 113.6% YoY to RMB861.7m with net profit up 49.3% YoY to RMB149.2m. The management guided that they currently have RMB980m order on hand and expect to secure RMB1,300m for 2009 with 60% order from railway sector. In 2009, the company would tap into the upstream petrochemical pipeline safety control business and take further M&A focusing on urban railway related company. CAG could be a laggard play in our view given the recent rally in niche counters. We have a Trading BUY call on the counter though we would suggest investors to observe how the counter opens trade today.

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Travelsky (696 HK, HK$3.54) – FY12/08 results conference call takeaways

Travelsky FY12/08 results. Turnover was flat at RMB2,005.2m, up 0.2% YoY while net profit was RMB560.1m up 11.2% YoY. Operating margin fell to 26.1% (down 6.7pcp YoY) on higher depreciation/amortization costs and increase in personnel costs. Key takeaways from the analyst conference call is as follows....

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