JPMorgan Chase & Co gave the International Coal Machinery (01683-HK) overweight rating, the target price rose from 7.8 yuan to 8.3 yuan, reflecting the 2012 forecast price-to-earnings ratio of 12 times. Maintain the company's sales and profit forecast for next year, but raise the 2012 sales and profit forecast by 4.6% and 6%, respectively, reflecting the positive factors of the increase in roadheader sales.

On Wednesday, the company announced an agreement with Shanxi Coal Mine Transportation and Marketing Group, called Shanxi Meijia Mining equipment Manufacturing Co., Ltd., which is mainly engaged in the production and sale of roadheader and other coal mining machinery, Moto said.

According to the agreement, International Coal Machinery holds a 49 per cent stake in the joint venture, with an initial investment of about 83 million yuan, mainly used in the production and sale of roadheader business, which is expected to start production by the end of next year.

International Coal Machinery fell 1.57 per cent to HK $6.89 yesterday.