About a year ago Credit Suisse First Boston (CSFB) reported that the outlook for Hong Kong-based Fountain Set, which specialises in knitting, fabric printing and the sale of clothes, was promising. The company, which also trades in dyed fabrics, yarns and threads, posted an interim profit last year of HK$104.8 million, up 2.2 per cent, while the second half of 2002 was also expected to be strong. Fountain Set was planning a fabric knitting and dyeing factory on the mainland to take advantage of World Trade Organisation membership. Fountain Set was expected to see operating margins improve further in 2003 as it reaped the full benefit of increased capital investment from the past two years. The positive outlook had convinced CSFB to maintain its buy recommendation. It raised its target price to HK$4 from HK$3.20. Shares of Fountain Set surged to a record high of HK$6.55 this month after a 90 per cent rise in interim profit. The counter closed at HK$6.45 on Friday.