Nomura maintains its 0757.HK downgrade with a target price of HK $1.01.

Sunshine earned 71-83.38 million yuan less for the year; Nomura said its lower-than-expected performance in the second half of 2008 was mainly due to a rise in inventory provisions (220.2 million yuan). Management expects sales to be weak in the first quarter of 2009, but it is believed that sales will pick up in the second quarter due to a more cumulative pricing strategy.

Nomura added that due to the low visibility of the company's profits in the first half of 2009 and the accelerated decline in average selling prices, there is a risk of a decline in profits for fiscal 2009; the increase in the turnover of accounts receivable / accounts payable and the expansion plan for fiscal 2009 will affect the cash position.

Solar energy rose 1.61% to HK $1.26 on Friday.