Jingkelon (0814.HK) announced that net profit for the first nine months of 2009 fell 6.4% from the same period last year to HK$113.41 million, accounting for 74.8% of Thomson Reuters' earnings forecast for FY09. DBS said that Jingkelon's performance was in line with expectations, but the stock's rating was downgraded from buying to holding because the stock price was close to the unadjusted target price of HK$6.87. DBS believes that Jingkelong's same-store sales are still expected to resume growth in the fourth quarter of 2009. The company's overall outlook remains positive, and DBS expects that the increase in CPI will provide more room for it to improve its pricing power and profitability. DBS said that the bank is awaiting a stronger rebound in Jingkelon's overall performance. Beijing Jingkelon rose 2.48% yesterday to close at HK$6.19.