Piper Jaffray initially gave Hendry (3389.HK) to increase its holdings rating, with a target price of HK$4 (equivalent to 15.6 times the price-earnings ratio in 2012); indicating that it has a huge network of branches in China and concentrates on selling high-end watches, can benefit from the increase in consumption levels in the mainland (especially in second- and third-tier cities); it is estimated that its core earnings per share in 10-13 has a compound annual growth rate of 24%; the current price-earnings ratio in 2012 is 12.8 times, which is not very expensive; it is expected that it will increase its market share through acquisitions, while the previous acquisition of Fengming Jewellery (0) 0.HK) can also develop the jewelry market potential.