Deutsche Bank issued a research report, giving Minmetals Construction a "buy" investment rating for the first time, with a target price of 1.84 yuan, with a potential increase of 51%, which is valued according to its forecast of net asset value per share of 2.45 yuan. It is optimistic that its prospects are backed by abundant cash and support from its parent company, and it is expected that there is plenty of room for growth in the future.

Deutsche Bank points to the recent decline in the share price of Minmetals, which is believed to have reversed the market's concern about the decline in mainland property prices in the second half of the year and the delay in the injection of property assets, but pointed out that Minmetals has 1 billion yuan in net cash and 500 million yuan in listing assets. the total is equivalent to 0.60 yuan per share, indicating that it has a strong financial position.

The report estimated that Minmetals Construction could receive capital injection from its parent company in the future, and pointed out that the downturn in the mainland property market would provide more opportunities for the group to expand. The bank pointed out that Minmetals's current price valuation is attractive, which is equivalent to a substantial discount of 51% in net asset value per share, with a price-to-book ratio of only 0.7 times.

Deutsche Bank expects Minmetals Construction's earnings per share in 2010 and 2011 to be 0.09 yuan and 0.15 yuan respectively, an annual growth rate of 17% and 65.6%.

The stock closed at HK $1.22 on Friday.