The Research Department of Everbright Holdings released a report that raised the target price of A8 from HK $4.95 to HK $6.65, which is equivalent to the price-to-earnings ratio of 23.2 times for 2010 and 16.6 times for 2011, reiterating the investment rating of "buy". It is pointed out that the cooperation with Nokia on the mobile music "music" platform can achieve a win-win situation and A8 can expand its market share.

Everbright controls the stock index, raising A8 electric media's profit forecasts for 2010 and 2011 by 8.8% and 14.1% respectively to 0.25 yuan and 0.35 yuan respectively, with a compound profit growth rate of 28.83% over the next three years. The bank believes that the cooperation between A8 and Nokia will reach a total of 200 million Nokia users in the mainland and reduce its dependence on China Mobile Limited (00941-HK).

The bank expects the current price of A8 to be equivalent to 17.3 times forecast earnings and believes it will benefit from long-term cooperation with Nokia, forecasting a return on equity of 22.3 per cent in 2010 and 26.1 per cent in 2011.

A8 Media closed at HK $5.44 throughout the day.