0045.HK outperformed the market with a target price of HK $15.55, based on the ratio of 17 times corporate value to earnings before interest, tax, depreciation and amortisation. Daiwa said the hotel operator is at the top end of the five-star hotel space, with its Peninsula hotel brand operating nine hotels in Asia and the US, and plans to open its first hotel in Europe (Paris) in 2012. Daiwa also said it owns Repulse Bay, a luxury residential project, and expects its Hong Kong business to account for 45 per cent of revenue and 79 per cent of net asset value in 2011.

The hotel fell 0.14% to HK $14.08 on Friday.