Goldman Sachs maintains the sales rating of CITIC Resources (1205.HK), with a target price of only HK$0.44.

Goldman Sachs said that with regard to CITIC Resources' net profit falling 28% to HK$204 million last year, the bank believes that the decline in CITIC Resources' profit was mainly due to impairment provisions of HK$6.42 billion, which were basically related to oil assets, but this factor was partly offset by a tax credit of HK$5.16 billion - Kazakhstan introduced a new tax system and the 2008-2011 tax rate was lowered. Goldman Sachs also said that if one project is excluded, operating profit actually increased 1.3 times to HK$2.28 billion, but 17% lower than expected.

The stock rose 6.19% last Thursday to close at HK$1.03.