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WHAT THE BROKER SAID

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Why you can trust SCMP

About a year ago SHK Financial Group reiterated its 'buy' recommendation on Gome Electrical Appliances and set a 12-month share price target with an 18.9 per cent upside.

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The broker increased Gome's sales forecast for 2005 to $12.2 billion. It set a new target price of $7.25 from $5.90. The counter was trading at $6.35 a year ago.

In August Gome announced a 4.48 per cent rise in net profit to $224.21 million for the six months to June despite turnover jumping 32 per cent to $7.81 billion. The counter closed on Friday at $4.425.

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