BoCom International maintained its 01868-HK buy rating, saying that its acquisition of HCI would strengthen the company's sales channels in the main markets of the United States and Canada and help the company tap its market potential.

BoCom said that Zhenmingli plans to acquire HCI, a US company engaged in designing, producing and distributing high-quality LED products, at a price of US$17m, of which US$4m is cash, and the rest through the allotment and issue of 25.17 million consideration shares, accounting for 2.67 per cent of the expanded share capital, the consideration shares are issued at the closing price of the previous trading day HK$4.03. HCI's FY09 and FY10's annual profit after tax and non-recurrent items are US$0.758m\ US$0.963m, respectively.

Zhen Mingli rose 3.24% yesterday to close at 4.14 yuan.