Goldman Sachs maintained the neutral rating of CITIC 1616 Group (1883.HK) and raised the target price from HK$1.63 to HK$2.00. Previously, the price-earnings ratio was raised from 8 times to 9 times. As market sentiment improved, investors' risk appetite for small and medium-sized stocks increased. The new price-earnings ratio has a 32% liquidity discount compared to the Morgan Stanley Capital International China Index (13.6 times), which is comparable to the average valuation discount of CITIC 1616 Group over the past two years. Goldman Sachs believes that over time, the company will eventually become a stock with a lower growth rate, because it is difficult to expand its market share further from its already high market share.

The stock closed down 2.0% to HK$1.98.