Bank of China International said that the net profit of International Coal Machinery (1683.HK) increased 52% in 2009 to RMB 2.29, in line with expectations; it gave the stock a buying rating, with a target price of HK$5.76. Sany International (0631.HK) rose 3.56% on Monday to close at HK$9.31; International Coal Machinery fell 0.77% on Monday to close at HK$4.019. Bank of China International said that Sany International and International Coal Machinery both released their first annual performance reports since listing, but according to the Thomson Reuters survey of the two companies' performance forecasts for this year and next two years, the price-earnings ratio corresponding to Sany International's closing price on Monday was 26 times and 21 times, respectively, and the International Coal Machine was 14 times and 10 times. Although Sany International's profit margins are high, this valuation gap seems too large. The bank added that benefiting from the strong growth in coal demand in China and industry consolidation triggered by the shutdown of small coal mines, the profits of the two companies are expected to increase further.