UBS downgraded Hesheng Innovation (0754.HK)'s rating from buying to neutral; the target price was cut from HK$21.37 to HK$15.6 (equivalent to a 47% net asset value discount per share). According to the bank, Hop Seng recently announced the acquisition of land in Panyu, which it believes will have a diluting effect on net asset value and earnings per share through the transfer of other land and the issuance of new shares at HK$14.62 per share; in addition, due to the company's allocation of shares in June, its profit forecast for the year 09-11 was lowered by 6%-11%. Hop Sang dropped 0.72% yesterday to close at HK$13.82.