BNP Paribas initially rated Grand Hotel (0045.HK) as holding because the company's business is stable, but its growth potential is mediocre and lacks strong growth momentum; the target price is HK$6.36, and the corresponding ratio of corporate value/interest, taxes, depreciation, and earnings before amortization for FY2009 is 11 times higher. Economic growth may accelerate again in 2010, and the company's earnings before interest, taxes, depreciation, and amortization may rebound at that time, but given the limited number of new projects, it may not be attractive, making it difficult to achieve growth in performance. However, the bank pointed out that the company's balance and liability situation is good, and the cash flow is highly predictable. The mature business can achieve an operating cash flow of HK$800 million a year, which is enough to handle HK$1.2 billion in debt. The stock rose 5.37% to HK$6.28 yesterday.