Citigroup has raised the target price of China Southern Airlines Co. Ltd. to HK$9.9 from HK$7.75, based on the estimation that its earnings could beat expectation in 2007, as its passenger load factor rose four percentage points to hit 75 percent.

The company's earnings per share in 2008 are expected to grow 76 percent in 2008, supported by its positive anticipation that passenger traffic could expand 16 percent to 18 percent, transport capacity, 13 percent to 14 percent, and passenger load factor, 78 percent to 79 percent.

Citigroup maintains its "buy" rating on the company.

The company's H-share price went up 9.61 percent, or HK$0.69 to close at HK$7.87 on Feb. 4, and on China's A-share market, it advanced by the daily limit up of ten percent to close at 21.79 yuan.