Lyon also raised the target price of Haitian International (01882.HK) from 12 yuan to 15.3 yuan, and also raised VTech (00303.HK) from 80 yuan to 83 yuan, but downgraded the ratings of the two companies from “outperforming the market” to “selling” to reflect excessive valuations. Leon pointed out that out of 15 Chinese and Hong Kong SMEs covered by the bank's observation, 12 recorded strong core profit growth in the first half of the year, with an average of 35.1%. The bank's investment strategy for the second half of the year maintained strong profitable growth stocks, mainly recommending Xinyi Solar (00968.HK), Minshi (00425.HK), Tongda (00698.HK), and Minhua (01999.HK); it also likes Xinyi Glass (00868.HK) and China Aircraft Leasing (01848.HK). When considering these shares, the bank included factors expected to appear in the second half of the year: margin support, seasonal factors, improved cash flow and leverage, and drivers specific to the industry and the company. The report mentioned that investors' interest in small and medium-sized stocks has improved recently. Compared with the overall market turnover in MSCI China, the transaction of the MSCI China Small and Medium Stock Index has increased to 10% compared to the overall market turnover in January.