Merrill Lynch International

According to the published report, it is expected that Tianjin Development (00882.HK) will be injected into the pharmaceutical business, which will increase its net asset value by 7.5% to 16 yuan per share in 2015. Instead, the Shenzhen-listed A-share company Lisheng Pharmaceutical (42.83, 1.73, 4.21%) is currently discounted by more than 30%. The bank raised Tianjin's development target price by 8% to 9 yuan. Maintain a “buy” rating.

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.