Daifuku maintained the purchase rating of Tianjin Development (0882.HK), with a target price of HK$5.2.

According to Dafu, Tianjin Development is seriously underestimated. The company holds 67.3% and 44.8% of the shares of Tianjin Port Development (3382.HK) and Dynasty Liquor Industry (0828.HK) respectively, while its stock price is slightly lower than the market value of the last two individual stocks it owns, which means that the value of HK$6.09 billion is not reflected in the stock price. Daifuku expects the company's current account profit to grow at a compound annual rate of 10% in fiscal year 07-09. Among unlisted assets, since domestic and foreign market demand remains strong, the elevator and escalator business is the company's second largest source of business after utilities; the profit of this business increased by 49% in the first half of 2008.

Tianjin Development fell 1.85% to HK$2.66 last Friday.