Daifuku maintained the Pan Asia Environmental Protection (0556.HK) purchase rating, with a target price of HK$1.60.

Daifuku said that China's energy saving and emission reduction goals and relatively rapid economic development should provide huge business opportunities for operators that provide environmental protection services such as Pan Asia Environmental Protection.

Dafu said that the Chinese government's goal is to reduce total emissions of major pollutants such as sulfur dioxide by 10% compared to 2005 during the “11th Five-Year Plan” period, and the urban sewage treatment rate is no less than 70%; Pan-Asia Environmental Protection's net cash is around 600 million yuan, which means the company can accelerate growth through acquisitions.

The stock closed yesterday at HK$1.42.