Citi maintains the purchase rating of Hop Sang Chuang Zhan Group (0754.HK), with a target price of HK$17.44.

The company achieved sales revenue of RMB 6.03 billion in the first half of 2010, accounting for only 30% of its annual sales target; Citi said that the original target was difficult to achieve, and Hep Sang Chuangzhan lowered its annual sales target to RMB 15 billion. Citi said the company's weak sales performance in the first half of the year was due to lower-than-expected sales in the Guangzhou and Shanghai markets. Citi added that management is still cautious about the Guangzhou market because the program launch schedule for the second half of the year will be affected by the Asian Games.

The stock rose 1.41% throughout the day to close at HK$9.36.