BOCOM International released a research report saying that among ordinary steel companies listed in Hong Kong, China Oriental Group (00581-HK)'s profit level was superior to its peers. Even when performance declined or lost in the second half of 2011, profit for the first half of the period reached 1,295 million yuan, an increase of 9% over the full year of 2010. The company's current balance ratio is 58%, which is lower than the industry average of about 68%. Based on careful consideration, the company's rating was downgraded to long-term purchases, and the company's target price was lowered to HK$3.4 combined.

BOCOM International estimates that the company's net profit in 2011 will fall 8% compared to 2010. Due to the macroeconomic impact, the bank believes that it will be difficult for the company's profit situation to rebound significantly in 2012. Based on careful consideration, it lowered the company's 12/13 EPS from 0.53/0.54 to 0.36/0.44, down 32%/19% from previous expectations. The current price compared to 2012/2013 PE was 5.3x/4.4x. The target price was lowered from HK$4.6 to HK$3.4, a decrease of 26%, corresponding to 2012 Pb of 0.80x.