Earlier, Liwen Group (0746.HK) stated that it expects its profit level for FY10 to increase significantly compared to FY09. Tu Guobin, head of the research department of Yongfeng Financial Group, said that after the stock's recent sharp rise, it is expected that there should be limited room for further growth.

Liwen Group rose 4.47% yesterday to close at HK$8.89. As of yesterday, the stock rose 13.2% during the year, and the Hang Seng Index rose 3.1% during the same period; Tu Guobin suggested only considering intervention below HK$9.00, giving a target price of HK$10.00 for January.

He added that the overall outlook remains bright, and the company's spin-off plan is also expected to support the stock's popularity. Liwen Group's profit growth was mainly due to a significant increase in revenue, rising sales prices of methane chloride products, and the full contribution of the second phase of the methane chloride production line for the entire fiscal year 2010, which led to a sharp increase in revenue; the company submitted a proposal to split the handbag business and go public yesterday.