Tai Fook issued a report reiterating its 00682-HK buy rating with a target price of HK $10, or 7.7 times the 10-year price-to-earnings ratio, in line with the stock's average valuation over the past five years and a substantial 68 per cent premium to the market price.

Dafu refers to the defensive nature of Chaoda Hyundai's business during the economic downturn, and its growth is expected to accelerate, with the company's net profit for the fiscal year to June up 104% from a year earlier. Tai Fook raised Chaoda Hyundai's recurrent earnings forecast for fiscal year 10 by 3% to 3.5 billion yuan, but kept its earnings forecast for fiscal year 11 unchanged at 4.1 billion yuan. The above forecast is equivalent to a 12% compound annual increase in recurrent earnings per share in fiscal year 08-10.

Chaoda Hyundai fell 1.81% to HK $5.97.