Macquarie first gave Fenmei Packaging (0468.HK) outperformed market ratings. The target price was set at HK$4.40, meaning that the expected price-earnings ratios for FY2012 and FY2013 were equivalent to 14.6 times and 11.0 times, respectively.

Macquarie said that the aseptic packaging produced by Fenmei Packaging is mainly used for dairy products, which is challenging Tetra Pak's global dominance in this field.

Macquarie believes that various factors will drive Fenmei Packaging to rapidly expand its current market share, and the company expects to increase its market share in mainland China and less than 1% to 23% and 2% respectively by 2015.

Macquarie said that in this market environment, the bank favors companies that have structural cost advantages, can provide value, and seem to achieve growth by expanding market share. Macquarie believes Fanmei Packaging meets this standard.

Fenmei Packaging rose 4.39% on Monday to close at HK$2.38.