ICBC International upgraded the rating of Pearl River Steel Pipe (1938.HK) from hold to buy, saying that the company received new orders of about 186000 tons of steel pipe in the third quarter, supporting the steady growth of orders. 109000 tons of the new orders are the replenishment order for the natural gas project in Colombia and the new order for Guangdong natural gas pipeline network, which is expected to provide a stable source of income. It is pointed out that the share price of Pearl River Steel Pipe has fallen by 65% compared with the bank's report in early August and has been oversold; based on the 12-year price-to-earnings ratio of 5.4 times, the new target price is HK $2 (originally HK $3.6), with an average annual growth rate of 75% per share expected for 10-13, which is expected to support the share price.

Pearl River steel pipe surged 26.13 per cent to HK $1.40 on Friday.