Dafu cut its recurrent profit forecast for 0809.HK by 44 per cent and 38 per cent respectively, and had previously lowered its sales forecast by 30 per cent and 28 per cent, respectively. Dafu said the main risks of Dacheng include a decline in consumer demand as a result of an economic slowdown, exports hit by the appreciation of the renminbi, tighter bank loans and falling petrochemical prices, eliminating the competitive advantage of chemical alcohols as a substitute. But Dafu added that these negative factors were fully reflected in Dacheng's valuation. Tai Fook rated the stock as a buy, giving it a target price of HK $1.63, which is in line with the valuation of comparable companies based on a reasonable price-to-earnings ratio of 7.2 times earnings in fiscal 2009.

Xiamen Port yesterday rose 5.11 per cent to HK $1.44.