Bank of America Merrill Lynch published a report stating that Tianjin Development (00882.HK) maintained its “buy” rating; the target price increased 8% to 9 yuan.

Bank of America Merrill Lynch expects Tianjin to develop the pharmaceutical business and increase its net asset value by 7.5% to 16 yuan per share in 2015. Instead, Lisheng Pharmaceutical, a Shenzhen-listed A-share company, is currently discounted by more than 30% on its stock price.

The bank anticipates that Tianjin Development's stock price concession has the potential to narrow further in the future, as its focus will be on the high-growth pharmaceutical business, but it still needs to wait for more details on the acquisition.