The transaction volume of the Hong Kong property market recovered in April after being hit in the first quarter. Private housing turnover rose 13.4 per cent year-on-year to HK $70.1 billion. The negative growth trend of other types of property has also been greatly alleviated. The main reason for the recovery is the increase in demand for homes, which grew as house prices slowed in the first quarter. We believe that this trend will continue to boost the company's revenue from interior decoration engineering in Hong Kong in 2019.

Macau's casino industry is bringing in new orders. Casinos in Macau usually renovate and expand their facilities on a large scale every six to eight years to cope with depreciation of equipment. Major players in the industry, including Wynn Macau, Sands China, Melco Boya and Galaxy Entertainment, have announced large-scale renovation plans in 2019. We expect that the company will be awarded the Macau interior decoration contract from this renovation season.

Our forecasts for earnings per share from 2019 to 2021 are HK $0.213, HK $0.231 and HK $0.245. We raised our target price to HK $4.20 to reflect the increase in the overall market valuation, which is equivalent to the price-to-earnings ratio of 2019 / 2020 / 2021 for 2019 / 2020 / 2021, which is equivalent to 19.7 / 18.2 / 17.1 of 2019 / 2020 / earnings. Maintain the investment rating of "collection".