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UPGRADES AND DOWNGRADES

BUY Sinopec Corp

Closing price: $2.85

Target price: $3.50

Share price performance (%)

1wk: 3.63

3mths:6.55

1mth:6.55

1yr:90

The recommendation has been raised to 'buy' as the recent sharp share-price correction, which more than discounts a potential deterioration in earnings from China's efforts to slow economic growth, leaves significant upside against the target price, S&P said in a report. Earnings estimate for this year has been increased by 5.7 per cent to factor in higher crude price assumptions.

S&P Asian Equity Research

HOLD i-Cable Communications

Closing price: $3.05

Target price: $3.15

Share price performance (%)

1wk: 0.82

3mths:19.6

1mth:6.08

1yr:68.5

Confirmation that i-Cable has secured three-year exclusive broadcasting rights to the English Premier League should help the pay-TV operator maintain its leading market position and generate additional advertising revenue, analyst Jenny Szeto said in a report. But near-term upside would be limited amid potential downgrades to earnings forecasts, and she cut her own estimates for next year and 2006 by 6 per cent and 1 per cent respectively due to expectations of higher programming costs.

Daiwa Institute of Research

BUY Weiqiao Textile

Closing price: $10.90

Target price: $12

Share price performance (%)

1wk: 0.45

3mths:4.8

1mth:14.5

1yr:NA

GK Goh has initiated coverage on the textile manufacturer with a 'buy' recommendation. Analyst Selina Sia noted in a report that the current trading level at 11.4 times this year's earnings and 8.7 times next year's earnings is 'undemanding' as net profit is expected to grow by 34 per cent in the next two years. The firm should benefit from a projected 15 per cent fall in cotton prices in 2004-05, Ms Sia said.

GK Goh Securities

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