Citi issued a report reiterating its 00829-HK buy rating, raising its target price from HK $6 to HK $6.50, with a multiple of 21 times forward earnings.

According to the report, the profit of Shenguan Holdings increased by 30% in the middle of fiscal year 2011, the output increased by 32%, the average selling price fell by 1%, and the gross profit margin was flat. It is believed that as the business of Shuanghui, the main customer, has returned to normal, the profit of Shenguan can grow by 34% in the second half of the year.

The crown closed at HK $5.09 yesterday.