Bank of America Merrill Lynch reported that China Chemical Fertilizer (00297.HK) is expected to grow 120% to 160% year-on-year in the first half of the year, according to a report by Bank of America Merrill Lynch. The bank maintained Sinochem Sinochem's earnings per share in fiscal year 2016, but lowered its target price from 2.2 yuan to 2 yuan, reflecting a recent correction in the share price of Qinghai Salt Lake Industry, resulting in a reduction in implied value. The new target has a potential total return of 46%.

The bank reiterated Sinochem's "buy" rating, saying that falling valuations, consolidation in production and distribution would bring long-term synergies, as well as improved shareholder returns.