Stock Name: ChinaMinzhong
Company Name: CHINA MINZHONG FOOD CORP LTD
Research House: MacQuarie
Company Name: CHINA MINZHONG FOOD CORP LTD
Research House: MacQuarie
Macquarie has initiated an “outperform” rating on Singapore-listed vegetable producer China Minzhong (CMFC.SI) and a target price of S$1.80.
Macquarie said China Minzhong, a large vegetable grower and processor in China that is part-owned by Singapore’s GIC, is gaining overseas market share as its product quality improves.
Macquarie said China Minzhong, a large vegetable grower and processor in China that is part-owned by Singapore’s GIC, is gaining overseas market share as its product quality improves.
The brokerage said China Minzhong posted a 48% compounded annual growth rate (CAGR) in exports for its 2007-2010 financial years by aggressively investing in equipment and international quality standards.
Macquarie projected a 29% CAGR for the firm’s exports in the next two years, adding that it can effectively double its combined gross installed plant and land under cultivation in the next 12 months.
The key risks for China Minzhong include a faster-than-expected yuan appreciation and executing its growth strategy.
At midday, China Minzhong shares were up 1.6% at $1.29 on a volume of 1.5 million shares.
No comments:
Post a Comment