According to a report released by Guoyuan Hong Kong, the diluted earnings per share of 01280-HK are expected to be 0.10,0.14 and 0.16 yuan from 2010 to 2012. With reference to the average valuation of the industry and considering the current market pursuit of the concept of third-and fourth-tier consumption, Huiyin Home Appliances is given a 12-month target price of HK $2.30, which is equivalent to the company's 2010 forecast price-to-earnings ratio of 20 times. The target price is about 16% higher than the current share price, so it is given a "buy" investment rating.

The report points out that at present, the number of household appliances held by rural residents is still on the low side. With the continuous improvement of the income level of rural residents, the market potential of rural household appliances and consumer electronics is huge. Huiyin's retail and distribution network expansion plans to add at least 16 proprietary stores, 50 franchise stores and looking for acquisition opportunities by the end of 2011 have provided the company with room for imaginative growth.

Huiyin household appliances closed at HK $1.97.