HSBC raised the target price of CITIC 1616 Group (1883.HK) from HK$3.00 to HK$320 to reflect the company's investment of HK$1.4 billion to acquire 20% of Macau Telecom's interest from its parent company; the bank said the deal would drive earnings per share growth. According to the bank, the company's net profit for fiscal year 2009 was HK$371.5 million, which is basically in line with the bank's expectations. HSBC maintained the stock's increase rating, saying its valuation was attractive, which is equivalent to the predicted price-earnings ratio of 9.4 times and the dividend yield for fiscal year 2010 of 5.3%.

The stock rose 1.77% yesterday to close at HK$2.30.