Bank of China International has an initial rating of 1633.HK as a buy with a target price of HK $6.97.

According to BOC International, the company is the leader in the mainland mask market, which accounted for 15.1 per cent of the mainland mask market in 2009 as measured by retail sales. Midea Holdings is expected to achieve an average annual compound profit growth rate of 30.6% for the fiscal year 2010-2013, and sales will grow higher than the industry average with the help of brand marketing and the expansion of the distribution network. Bank of China International also said that with the establishment of a joint venture with South Korean cosmetics and skin care company Hanbul, the company will begin to implement a multi-brand and multi-product strategy.

Midea Holdings rose 1.67 per cent to HK $6.10 on Friday.