Goldman Sachs maintains a neutral rating for CITIC 1616 Group (1883.HK) because the favorable factors seem to be gradually being digested, and the macro risks facing the voice business volume still persist. The valuation is almost double the low level in October. The stock price catalyst and the benefits brought by 3G are not yet clear, nor can it be implemented immediately. However, Goldman Sachs raised its target price from HK$1.28 to HK$1.43. Based on its forecast price-earnings ratio for the 2009 fiscal year, Goldman Sachs previously raised its net profit forecast for the 2009 and 2010 fiscal years by 12% and 17%, respectively, because it believes the company will further enhance synergies in terms of revenue and cost savings. Goldman Sachs said that the company's revenue for the second half of the year was 14% higher than the bank's expectations, mainly due to the strong growth in voice business volume in the second half of fiscal year 2008 (up 41% from the same period last year) and the rebound in price per minute (up 2.6% from the same period last year); net profit in the second half of the year increased by 41% over the same period last year, 20% higher than Goldman Sachs's expectations; and the company is expected to maintain a 50% dividend rate in the foreseeable future. CITIC 1616 Group rose 13.33% yesterday to close at HK$1.36.