Goldman Sachs maintained the purchase rating of Maoye International (0848.HK) and raised the target price from HK$3.00 to HK$3.20 (equivalent to 18 times the price-earnings ratio for FY10) to reflect the latest market value of its A-share investment and its latest level of debt to close the business. Goldman Sachs said that in addition to increasing business momentum, the bank still believes that Maoye International's valuation is the most attractive among the shares of Chinese department stores listed in Hong Kong.

Goldman Sachs added that although the company's profit for the second half of 2009 was 16% lower than its expectations, management's judgment on 2010 business trends showed that the business momentum so far was stronger than Goldman Sachs's expectations.

The stock fell 5.07% last Friday to close at HK$2.06.