Goldman Sachs maintained the neutral rating of Tianjin Development (0882.HK) and was fully valued; the target price was raised from HK$2.6 to HK$3.1, a 55 percent discount from the 2009 projected net asset value of HK$6.88. The company's net profit in 2008 fell 27% to HK$506 million, 36% lower than Goldman Sachs's forecast; the year-end dividend was HK$0.03 per share, and Goldman Sachs expected to be HK$0.06; the average sales price of the product was lower than expected, and the port business's profit before interest and tax fell short of expectations, which was the main reason for the decline in performance; utility performance fell short of expectations, as salary and raw material costs both exceeded expectations. Goldman Sachs raised the company's expected earnings per share in 2009 by 19% because the government extended the government's subsidy period for the utility business until the end of 2009; in addition, it raised the expected earnings per share for 10 and 11 by 17% and 23%, respectively, as it is anticipated that the subsidy period may be further extended.

The stock fell 6.56% yesterday to close at HK$3.42.