Henderson Land Development Daiwa Institute of Research has downgraded its rating on Henderson Land, expecting it to perform within 5 per cent of the Hang Seng Index over the next six months because of further provisions on a luxury residential project in Tai Po and lack of a near-term share price driver. Analyst Jonas Kan factored in a $1.25 billion provision for the project and cut his profit forecast this year by 39.2 per cent to $1.94 billion. He did not see the stock, trading on 17.3 times expected earnings for this year, as attractive. 'Following the recent share price rebound, Henderson Land offers less than 10 per cent upside from our estimated fair value of $21.20 per share,' he said.

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China Mobile (Hong Kong) BOC International has an 'underperform' rating on China Mobile as the mobile phone company's subscriber uptake last month was down 15 per cent mainly because of Sars. Analyst Allan Ng said market share fell to just 49.4 per cent last month, compared with 53.2 per cent in March and 63.1 per cent last year. He said the slowdown could not entirely be attributed to Sars and was also the result of increased competitiveness in the sector. He said the stock was trading at just under 10 times this year's earnings and was 'fully valued on account of its unexciting outlook'.