Jinghua Shanyi maintains 100 million and precision (0838.HK) buy rating, profit expectations and target price to be reviewed.

The net profit of Yihe Precision in 2010 was HK $303.42 million, up from HK $31.52 million in 2009. Jinghua Shanyi said the profit growth of Yihe was in line with the bank's forecast, thanks to a 66 per cent increase in revenue from the previous year and a drop in fees.

The bank noted that Yihe's gross profit margin rose 11.9 percentage points to 31.8% due to higher operating rates and improved product mix. The bank said that the profit margin of producing moulds is higher than that of producing components, so the increase in revenue from the mold business will help improve the level of profit margins of 100 million and precision.