China Merchants Securities (Hong Kong) published a new research report saying that maintaining Shenyin Wanguo (00218-HK) is superior to the market rating. The 12-month target price is HK$4, which is equivalent to 20 times the price-earnings ratio predicted in 2009, with a 27% premium over the market price.

According to China Merchants Securities (Hong Kong), Shenyin Wanguo's performance fell short of the market and its expectations. Among them, the sharp decline in brokerage and leveraged business revenue and losses from its own securities trading were the main reasons. The company's performance depends largely on market trading volume. China Merchants Securities (Hong Kong) estimates that the average daily turnover of the Hong Kong market in 2009 may be around 50 billion yuan, which further estimates that Shenyin Wanguo's earnings per share in 2009 will be HK$0.21.

Shenyin Wanguo rose 0.65% yesterday to close at HK$3.11.