U.S. jobs data beat estimates with payrolls climbed by 243,000 in January and the unemployment rate dropped to 8.3%, the lowest since February 2009. The Institute for Supply Management's non-manufacturing index rose more than forecast, to 56.8 from 53 in December. U.S. stocks rallied Friday and reached 4-year high. Dow Jones Index closed at 12,862 points, rose 157 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.