Goldman Sachs Group issued a report that added 00848-HK to the convinced buy list, reiterated the buy rating, and raised the target price from HK $4.50 to HK $4.80 (equivalent to 22 times 11-year earnings).

The bank pointed out that Maoye's profits and land reserves are growing rapidly, but the valuation is on the low side; it increases its earnings per share by 3% and 4% in 10x11, its revenue in fiscal year 11 is expected to grow by 61%, and operating profit is expected to rise by 36%. It is also believed that Maoye will continue M & An activities.

Maoye International fell 1.4 per cent to HK $3.52 yesterday.