Citi resumed the purchase rating of Dacheng Biochemical (00809-HK), and the target price was sharply raised from HK$1.74 to HK$3.46, which is equivalent to forecasting price-earnings ratio and market account ratio of 8 times and 1 times over the next year.

Citi said that as the price of lysine peaked and concerns about the Chinese economy, the stock price fell 32% since August 2011. Although lysine prices have declined seasonally, the annual average is estimated to be similar to 2011. The polyol business has been hampered a bit. Due to the integration of production capacity at the new base in Jilin, profit growth in 2012 is expected to slow down in 2011, when profit growth was strong in 2012.