Tai Fook Securities maintains its buy rating on Tianjin Development (0882.HK) with a target price of HK $5.90 (equivalent to 11.8 times expected earnings per share for fiscal year 2010). Dafu Securities believes that from a fundamental point of view, the share price is low and is valued at a discount of 15 per cent to the market value of Tianjin Port Development (3382.HK) and Dynasty Wine (0828.HK) held by Tianjin Development (21.0 per cent and 44.8 per cent, respectively). And the stock is valued at only 0.5 times the book value of Tianjin Development's unlisted business, which mainly includes public utilities, elevators and escalators. In addition, Tianjin's unlisted business is expected to contribute 60 per cent to the company's profits in fiscal year 2010.

Dafu Securities said that Tianjin has developed a wide range of businesses, which provides a defensive nature for the unit, and they expect Tianjin Development's recurrent business profits to grow at a compound annual rate of 8 per cent in the 2008-10 fiscal year amid challenges to the operating environment.

Tianjin Development rose 0.21 per cent to HK $4.83 on Friday.