Bank of America Merrill Lynch bought the rating for Times Group (1023.HK) and looked forward to HK$3.6 (8.5 times the price-earnings ratio for 2012); it indicates that Times has a leading position in the handbag production market. As more brand-name handbags are transferred to mainland production, it also strengthens the prospects of the industry. It is expected that its earnings in 12/13 will increase 22%/25%; it believes that the current price in fiscal year 12 has a price-earnings ratio of 6 times and an interest rate of 4.5 percent. The valuation is attractive.

Times was listed at HK$2.95 per share in December last year, and Bank of America Merrill Lynch is the sponsor of its listing.

The stock fell 1.15% throughout the day to close at HK$2.57.