Bank of America Securities: Reaffirms Underperform Rating for CNOOC International, Lowers Target Price to 13.3 Hong Kong Dollars.

Bank of America Securities released a research report stating that Yihai International's first half year performance fell short of expectations, with weak revenue growth and flat net profit. Considering that there is no improvement in the prospects for business growth, the forecast for earnings per share for this year and next year has been lowered by 9% and 15% respectively. They reiterated their "underperforming the market" rating and also lowered the target price from HK$13.6 to HK$13.3. Bank of America Securities pointed out that Yihai International's overseas business profitability still needs to be improved over time. Although they see development of new B2B customers and customized products as potential drivers of growth, they expect their short-term contributions to be insignificant, and believe that structural negative factors in the industry will continue to exist.