China Merchants Securities gave Shenguan Holdings (00829-HK) an superior investment rating, maintained a target price of HK$9.3, slightly adjusted EPS for 2010-2012, and predicted RMB0.3, 0.41, and 0.53 yuan. According to China Merchants Securities, the company announced its 2010 interim results, and sales revenue increased 49.9% year over year to 475 million yuan (RMB, same below). Gross profit increased 52.1% year over year to 299 million yuan. The bank believes that the increase in sales revenue is basically in line with expectations, but due to scale advantages and reduced minority shareholders' equity, the profit attributable to the company's shareholders increased sharply by 72.2% year-on-year to 220 million yuan, exceeding the Bank's expectations. The company's sales expenses and management expenses fell 21% and 9.6% year over year in the first half of the year, and the company's net profit margin rose to 46.8%. Shenguan Holdings rose 5.88% yesterday to close at HK$9.00.