The Bank of China maintained the purchase investment rating of Pearl River Steel Pipe (01938-HK) and gave it a target price of HK$4.5. It is estimated that the company's EPS for 2011/2012 will reach 0.24/0.32 respectively, and the P/E corresponding to 2011/2012 will be 12.0x/9.0x, respectively, which is optimistic about the company's medium- to long-term development potential. According to the Bank of Communications, the company achieved operating income of 1,633 million yuan and net profit of 113 million yuan in the first half of 2011, up 118.7% and 88.7%, respectively, from the previous year. The company achieved basic earnings of $0.11 per share. The company delivered 215,000 tons of orders in the first half of the year, and is expected to complete nearly 400,000 tons throughout the year, an increase of more than 70% over the previous year. The company is currently in a period of rapid expansion of production capacity and will continue to benefit from the rapid development of oil and gas pipeline construction in China. Pearl River Steel Pipes rose 2.11% on Friday to close at HK$3.38.