Comba reported weak 1H13 results as its core wireless access & transmission business revenue decreased 48.9% YoY
Management has made some efforts to reduce costs, but we view the decision to begin capitalising R&D expenses as misleading given its commitment to R&D spending
Maintain N(V) but cut DCF-based TP to HKD2.55 from HKD3.20 to reflect both cuts in earnings forecasts and limited visibility on China demand for its small cell solutions