Merrill Lynch maintained the purchase rating of Tianjin Development (0882.HK) and raised the target price from HK$4.10 to HK$6.50 as the economic outlook improved. The bank expects Tianjin's development to benefit from the strong growth of Tianjin's economy, and expects its terminal throughput to improve as China's exports recover. Merrill Lynch notes that the company's utility business will benefit from potential fee increases and lower coal prices. Merrill Lynch expects Tianjin's recent consolidation and divestment of toll roads to provide a positive catalyst to push stock prices to outperform. According to Merrill Lynch, the new target price is 40% off the estimated net asset value for fiscal year 2010.

The stock fell 0.81% to HK$4.88 last Friday.