Credit Suisse lowered the target price of Shengshi Container (0716.HK) from HK$3.15 to HK$2.80, maintaining the stock's neutral rating. The stock's valuation looks very attractive. It is about 4 times the expected price-earnings ratio of the first half of the year when the profit for the first half of the year is converted to the annual rate. However, the container manufacturing business is very cyclical. In addition, the economic outlook for the US and Europe is uncertain. The above factors make investors cautious. Credit Suisse maintains the view that Shengshi Container sales, profit margin, and profit in the second half of 2011 may be weak; the current valuation of the stock is lower than the median historical price/earnings ratio, but it is still above the median stock price/book value and the low level of 2008-2009. Credit Suisse said that since there is no sign of rising demand and there is uncertainty about global trade demand, the bank believes it is too early to buy this stock now. Shengshi Container dropped 4.35% throughout the day to close at HK$2.42.