JPMorgan Chase & Co said 0053.HK 's valuation was reasonable, but it was not expected to outperform the market, especially since it has a UK hotel and gaming business. About 60 per cent of Guohao's net asset value is in cash and securities trading, and earnings predictability is still low, according to JPMorgan Chase & Co.

The bank noted that Guohao's financial assets had increased from HK $6 billion in June 2009 to more than HK $18 billion in December 2009, during which time Guohao made a profit of HK $604 million from principal investments.

JPMorgan Chase & Co maintained its neutral rating and raised its target price from HK $43.75 to HK $80, based on the long-term average discount to its current net asset value.

Guohao fell 1.07 per cent to HK $78.45 yesterday.