Merrill Lynch maintained the purchase rating of Times Group (1023.HK) and raised the target price from HK$4.4 to HK$5.05; indicating that its main customers are optimistic about the outlook, which has caused Times to get more urgent orders recently; while raw material costs fall back, gross margin for fiscal year 13 is expected to improve; it raised its profit forecast for fiscal year 13/14 by 2%-3%; it is expected that revenue will increase 14% year-on-year and profit will increase 18%. Times Group manufactures and sells handbags, small leather goods and travel goods. Customers include Coach, Michael Kors and Prada.