Deutsche Bank maintained the "hold" rating of China Chemical Fertilizer (00297.HK), raising its target price from 1.27 yuan to 1.44 yuan.

With the acquisition of Qinghai Salt Lake expected to be completed in the second half of the year, the bank included 15.01 per cent of the shares it acquired and raised its 2015 net profit forecast by 8.3 per cent, with earnings per share expected to be 6 cents in 2015 and 9 cents in 2016.

At present, the global fertilizer market is in oversupply, and it is unlikely that coal prices in the mainland and global urea prices will recover in the short term; the phosphoric acid market will still be oversupplied; potash prices are still weak. The bank's acquisition in the valuation model increases the "related" value and a small amount of cash, indicating that the company's core operations are still weak, and its net profit and discounted cash flow valuations are only supported by the Qinghai Salt Lake exchange.