According to Yamato, the net profit margin of Hopewa Highway Infrastructure (0737.HK) fell 9 percentage points from the same period last year to 44%. The main reason is that its Guangzhou-Shenzhen Expressway enjoyed a 10% tax rate discount that expired in 2010, and the tax rate rose to 22%. However, Daiwa raised the six-month target price for Hewa Highway infrastructure from HK$5.32 to HK$5.80 based on discounted cash flow, reflecting that the bank is more optimistic about the West Line Phase II and Guangzhou-Shenzhen Expressway business; Daiwa maintains the stock's holding rating, and believes that the dividend rate should be the main highlight for attracting investors in the current adjustments to market conditions. Hopewell Highway Infrastructure declined 1.25% yesterday to close at HK$5.52.