Macquarie downgraded the rating of China Rongsheng Heavy Industries (1101.HK) from neutral to outperformed the market, and lowered its target price from HK$2.00 to HK$0.65; the bank believes that Rongsheng Heavy Industries' profit in 2012 is likely to be drastically lowered due to increased order risk, particularly the reduction in ship deliveries. Macquarie said the company issued a profit warning on Monday further confirming this problem; the reduction in orders caused revenue growth to slow, and Rongsheng Heavy Industries' earnings per share forecast for the 12-14 fiscal year was lowered by 37%-79% by Macquarie. According to the bank, orders from Greek shipowners account for 23% of Rongsheng Heavy Industries's total order value, and they may place more speculative orders, which mainly depend on financing issues and the prosperity of the shipping market; currently, financing is difficult, and supply in the shipping market is tight. After falling sharply by 23.6% on Monday and Tuesday, the stock has now rebounded 1.9% to HK$1.09.