DBS said that Minghui International (3828.HK) plans to invest 10 million US dollars to build a washing plant in Changshu, Jiangsu, which can provide better service to the company's mainland hotel customers, but it will not contribute much to the company's profit in fiscal year 2010. DBS said that looking back at Minghui International's establishment of a new joint venture at the beginning of this year to provide towels and sheets to mainland hotel customers, the construction of a washing plant will be an extension of this business to provide one-stop services. The bank maintained its buying rating and raised its target price from HK$1.40 to HK$1.70, using the performance of fiscal year 2010.

Minghui International rose 0.84% to HK$1.20 last Friday.