We previously viewed International Elite Ltd (“IEL”) call centre operations as a cash cow business with steady and visible earnings amid global economic weakness.  While we still hold onto this view, our recent meeting with management has shed light to a stronger earnings growth than expected.  Original plans to expand in Shenyang have stalled, but the company is in discussions to develop an additional call centre in Guangzhou.  The new call centre will have an estimated seating capacity of 5,000, which will bring IEL’s total capacity to 7,900.  This, coupled with expected strong Average Revenue Per Seat (ARPS) reversion to pre-2009 financial crisis levels provides a strong organic growth profile for IEL.  Also, the company is sitting on a strong cash position which we believe can provide opportunities for both further organic expansion and synergetic opportunities.  Having adjusted the earnings upwards by 21.2% and 23.0% for FY10F and FY11F respectively, our sum-of-the-parts (SOTP) valuation price the share at HK$1.28, implying c.35% upside from its current price.  We reiterate our BUY rating for this stock.