Bank of America Merrill Lynch first gave a buy rating to 0716.HK Container, the world's second-largest container maker, with a target price of HK $2.94, or 11.7 times 2013 earnings and 1.4 times book value.

Bank of America Merrill Lynch said the stock would benefit from the expected continued rise in demand from the container manufacturing industry. The bank expects the profit of Sheng Lion Container to grow by 37% and 49% in fiscal year 14, compound year. Bank of America Merrill Lynch believes that Sheng Lion Container will benefit from a steady improvement in container manufacturing because of limited capacity growth, high barriers to entry and sales growth due to a low base in 2012.