BNP Paribas maintained the purchase rating of the Grand Hotel (0045.HK); raised the target price from HK$11.10 to HK$13.10. The target price was reduced from 35% of the previous net asset value to 30%, and the profit forecast for 2010-11 increased by 5%-10%.

The bank estimates that net operating profit in 2009 fell 61% from the previous year to HK$313 million, affected by the economic downturn.

The Grand Hotel will announce its results on March 12. The bank believes that the factors of the weak performance in 2009 have been absorbed into the stock price. Investors are advised to expect the company to see strong growth in the future, as the economy and tourism industry begin to recover.

Grand Hotels rose 2.95% yesterday to close at HK$11.16.