The optimal performance of an absorption heat transformer, i.e. a type II absorption heat pump, is investigated by using the cyclic model with continuous flow. The effect of thermal resistances between the heat transformer and the heat reservoirs is considered in the model. A general expression related to the rate of heat-pumping, the coefficient of performance and the overall heat transfer area of the heat transformer is derived. The expression is used to optimise the main performance parameters of the heat transformer. The maximum rate of heat-pumping and the corresponding coefficient of performance are calculated. For a given overall heat transfer area of the heat transformer, the optimal relation of the heat transfer areas of the heat exchangers is obtained. The problems concerning the optimal choices of other performance parameters are discussed. The results obtained here can not only enrich the theory of finite time thermodynamics, but also provide some new theoretical bases for the optimal design and operation of real absorption heat transformers.