The Associated States Group (1,200.HK) previously warned that there would be losses in the second half of 2011, and that net profit for FY2011 would decline significantly (the company achieved a net profit of HK$533 million in FY2010). Barclays Capital expects the company's full-year net profit to fall 80% year over year to HK$158 million, implying a pre-tax loss of HK$110 million in the second half of 2011. The bank said that losses in the second half of the year may also mean that the company will not pay a final dividend, further weakening support for its current stock price. Barclays said that during the period of decline in the real estate market, Union Group's stock price tended to be at the same level as its book value and maintained the stock reduction rating. The target price remained at HK$2.55, which is in line with the company's expected book value per share for fiscal year 2012. The United Arab Emirates Group rose 0.2% yesterday to close at HK$4.08.