Gelonghui, April 7 | Dahua Jixian released a report stating that China Merchants Port's net profit fell 19.9% year-on-year to HK$6.23 billion last year, which is basically in line with this forecast. The decline was mainly due to the decline in profit contributions from its joint ventures and associated companies. Among them, the performance of Shanghai International Port Services (SIPG), a major affiliate, was adversely affected by the decline in shipping investment profits. The bank believes that China Merchants Port's valuation is cheap. The current price is equivalent to 6.6 and 6.5 times the projected price-earnings ratio for this year and next two years, with attractive dividend ratios of 6.8% and 6.9%, respectively. The bank raised its target price from HK$13.97 to HK$14.8, maintaining a “buy” rating.