BoCom International downgraded True Mingli (01868-HK) to neutral, and significantly lowered the company's operating income forecast for FY11 / FY to 1.81 billion yuan / 2.23 billion yuan, core net profit per share of 0.15 yuan / 0.17 yuan, and the target price to 3.48 yuan.

BoCom said that the company's fiscal year balance sheet date was changed from December 31 to March 31, and this is the unaudited interim results for the 12 months ended December 31, 2010, which is equivalent to the bank's current full-year performance forecast for fiscal year 2010. During the period, sales revenue was 1.48 billion yuan, an annual increase of 33.4%, lower than the bank's forecast, and the core net profit per share was only 0.115 yuan, much lower than the bank's forecast, with an annual decline of 41.2%, mainly due to lower-than-expected income and gross profit margin and a sharp rise in expense rates.

Mingli fell 17.19% to HK $3.18 throughout the day.