Riven paper now drops 3.68% Citi maintains the shares to sell ratings

Riven paper (02314-HK) is now down 3.68%, at HK $7.59, a deal of HK $12.8237 million, which is currently losing a major market, with the index falling 1.61%.　　Citi maintained the stock's sales rating, but the target price was set to increase from HK $1.80 to HK $7.30 (still below the current price of HK $0.29), which was preceded by a-fold increase in valuations from the previously low to 0.9 times, as the company won a renegotiation of its contracts. The bank expects earnings per share to be flat for fiscal year 2010, with a 15% per cent composite annual growth rate expected to be negative for the 2009-2011 fiscal year. It also means that the company did not have a capacity expansion plan until fiscal year 2011 because it was committed to repaying its debt. The bank argues that China's cardboard industry is in a downward cycle as export activity is weaker and domestic consumption slows, bringing pressure on average sales prices.