Dahua Jixian is still optimistic about the Dynasty Liquor Industry (0828.HK). Although the wine industry's production and profit fell 4.76% and 11% respectively in the first quarter of 2009, it is estimated that Dynasty Liquor's sales fell by more than 20% in the first five months of 2009, lower than market expectations. However, Dahua added that long-term sales prospects are improving due to economic recovery and potential acquisition activities; sales volume is expected to pick up in the second half of 2009 and 2010; it pointed out that during the 2003-04 economic recovery process, sales of liquor and wine increased 52.4% and 31.9% respectively over the previous year.

Dahua said that the current price already reflects the factors behind the slowdown in sales growth in 2009; maintaining the buying rating, the target price was raised from HK$1.68 to HK$2.25.