Global rating agency Fitch downgraded Greece from B- to CCC, raising concerns Greece would be forced out of eurozone. Moreover, Moody's downgraded sixteen Spanish banks including giants Banco Santander and BBVA. U.S. stocks slumped Thursday and Dow Jones Index closed at 12,442 points, fell 156 points.

We initiate coverage with a buy. Silver Base is trading at 8.0x 2012E PE. Our DCF based valuation is HKD 11.80 or 81.8% above the current price, for an implied PE of 14.6x 2012E EPS. Silver Base has recently won distribution rights from four premium baijiu manufacturers (Luzhou Laojiao, Fenjiu Group, Guizhou Yaxi Jiaoand Wuliangye). With the addition of Guizhou Yaxi Jiao series, we expect Silver Base to target more regional brands in the mid premium segment and bring them nationwide.