Ling Bao Gold (3330.HK) retreated 43% in the first half of the year to RMB 72.99 million. Bank of China International believes that this figure is only 29% of the forecast for the whole year; production is unlikely to increase significantly during the year, the net debt ratio is high, and there are no mergers and acquisitions, so its rating was lowered from holding to selling, and the target price was lowered 25% to HK$2.26, which is equivalent to 10 times the price-earnings ratio predicted for next year.

Lingbao Gold fell 4.03% last Friday to close at HK$2.86.