Lining (2331.HK) fell 3.8% to HK $24.20. After a record high of HK $29 in November, a profit margin was reported, and it was expected to fall again at an early low of HK $24 later in the year.

Morgan Stanley raised its target price from HK $23.50 to HK $25.35, representing 39.3 times earnings in 2008. It has raised its earnings forecast by 8% to reflect the factors announced last Thursday in the acquisition of 57.5% of red double happiness.

Red double happiness is the largest table tennis equipment manufacturer in mainland China.

Morgan Stanley said the move will help to provide cross selling opportunities for table tennis clothing and shoes.

Maintain a neutral rating.

The turnover was moderate, at HK $30 million 600 thousand.