Shares of textile and garment company Victory City International Holdings fell 3.41 per cent yesterday as investors who subscribed to a placement last week took some profits on what has been a star market performer. Victory City closed at HK$1.98, down seven cents on the day. Analysts remained positive on Victory City which has followed in the high-performing footsteps of peers Texwinca Holdings and Fountain Set (Holdings). The stock has gained 395 per cent since the start of last year. Phillip Securities research head Louis Wong Wai-kit said: 'I am positive on Victory City's earnings prospects because of the rising demand from the United States.' While war worries might hurt the sales of luxury goods, the company's products were not expected to be affected much by the war given they were low priced, said Kenny Tang Sing-hing of Tung Tai Securities. Mr Tang is expecting selling pressure on the counter to abate following the March 14 placement of 40 million new shares at $1.75 each to raise $68 million to fund an expansion in production capacity and general working capital. Victory City, the fifth-largest manufacturer of knitted fabrics in China, is seeing rising orders from retailers Wal-Mart, Khol's, JC Penney, Sears, Uniqlo, Giordano and Bossini. It recorded a 42 per cent increase in turnover and earnings growth of 175 per cent in the six months to September 30 last year. Its gross profit margin increased to 19.8 per cent from 16.5 per cent in the corresponding period a year earlier, ABN Amro analyst Eddie Lau said. 'We expect a similar growth rate for the manufacturing operation in the second half of this year,' Mr Lau said. Trading at just 7.5 times expected earnings, Victory City was cheap compared with its peers Fountain Set at 9.7 times and Texwinca at 12.9 times, he said.