HSBC initially rated CITIC 1616 Group (01883-HK) as an increase in holdings, with a target price of HK$2.2.
The bank said that although the company is small, the business situation is good; it dominates the professional voice service market. The company's net profit is expected to increase 24.1% in 2009, mainly due to the acquisition of Runxun Communications.
CITIC 1616 Group fell 2.21% yesterday to close at HK$1.33.