Dongying Asia Securities maintains Shengshi Container (0716.HK)'s buying rating; whether Shengshi Containers can invest depends on whether investors believe the stock's ultra-low valuation (based on annualized mid-term profit calculation, the stock's valuation is about 4 times the forward price-earnings ratio) already fully reflects the profit risk faced by the company in the future. The company's medium-term net profit soared eight times year over year to US$101.9 million. Dongying Asia Securities said this exceeded the agency's expectations of US$80 million; Dongying Asia Securities also said that Shengshi Container's medium-term gross profit margin was 19.2%, hitting an all-time high. Considering the increased risk in global trade, the agency lowered the target price of the stock from HK$4.20 to HK$3.50. Based on the expected earnings per share for the 2012 fiscal year, the new target price is equivalent to a price-earnings ratio of 6 times. The stock surged 11.45% yesterday to close at HK$2.53.