Macquarie downgraded victory pipeline (1080.HK) to neutral from outperforming the market, lowered its target price to HK $1.90 from HK $2.70, and cut its profit forecast for 2010-2011 by 9 per cent to 27 per cent, reflecting delays in the completion of capacity increases.

The bank added that the long-term outlook for the industry remained unchanged despite a sharp cut in the 2010 profit forecast for Shengli Pipeline. The bank said China needed gas pipelines for structural reasons to improve energy efficiency and that the Shengli pipeline should benefit from demand growth.

Victory Pipeline fell 3.08 per cent to HK $1.89 yesterday.