DBS maintained its 1868.HK buy rating; raised its target price from HK $5.07 to HK $8.39 and raised its earnings forecast for the 2009-2011 fiscal year by 3 per cent by 50 per cent to reflect stronger-than-expected sales orders. The bank expects sales to recover strongly in fiscal 2010, driven by an upward trend in the global economy, increased penetration of LED products and supportive government policies.

The bank added that Zhen Mingli had made some small acquisitions this year, which were expected to further diversify its products and broaden its sales network and customer base.

The stock closed 0.2 per cent lower at HK $5.73.