ChinaMinzhong - China Minzhong Food started at Outperorm by CIMB

Stock Name: ChinaMinzhong
Company Name: CHINA MINZHONG FOOD CORP LTD
Research House: CIMB

CIMB starts China Minzhong Food (K2N.SG) at Outperform with $1.52 target price, based on 7.5x FY11 P/E. Tips EPS CAGR of 28% over FY11-13 for vegetables processor, driven by higher selling prices, volumes, according to Dow Jones.



CIMB says management’s plan to acquire more land for cultivation should support growth, while diversification of products, increase in proportion of higher-margin offerings expected to boost profits; “potential catalysts are likely to come from announcements of land acquisitions at attractive prices and good quarterly results.”



Shares +0.8% at $1.30.