Dahua Jixian maintained the purchase rating of Minmetals Construction (0230.HK), with a target price of HK$2.55. The company's net profit for fiscal year 2010 increased by 309% year over year to HK$527 million; excluding items such as fair value income from investment properties, the company's basic net profit increased 175% year over year to HK$249.6 million. Dahua Jixian said that the gross profit margin of Minmetals Construction in 2010 increased from 22.5% the previous year to 37.8%, far higher than the bank's forecast of 31.7%. Dahua Jixian said that the increase in profit margin of Minmetals Construction is due to the company's strengthened control over construction costs, adjusted the product structure, and increased the average sales price of registered projects in 2010. Minmetals Construction management expects contract sales in 2011 to reach HK$7 billion, a sharp increase of 82% over the previous year; Dahua Jixian believes that Minmetals Construction can achieve these goals. Minmetals Construction dropped 1.4% yesterday to close at HK$1.41.