China Golden Stone (1380.HK) made a net profit of 12.5 million yuan in the six months to the end of June, compared with a loss of 4.918 million yuan in the same period last year. In terms of a profit of $1.6 million in the first quarter (excluding IPO costs), the performance in the second quarter was strong.

Citi said it had expected that China Goldstone would only break even; it maintained its buying rating, with a target price of HK $3 above its record high.

China Goldstone was listed in mid-March, with a maximum of HK $2.4, and the current price is still 37% higher than the listing price of HK $2.25.

China Goldstone closed at HK $1.35 yesterday.