Although J.P. Morgan lowered the target price of MI Energy (1555.HK) by 13%, it still reached HK$4. The target of the reduction was to reflect long-term oil prices of 85 US dollars, but the ratings maintained growth due to low valuations and strong growth prospects. It indicated that its net income after adjustment last year was RMB 768 million, lower than expected, mainly due to one-time effects such as debt issuance expenses, early loan repayment and loan capitalization. It is estimated that its Kazakhstan project will continue to cause a drag this year and next two years, but by 2015, its production could double.