Stock Name: Yamada
Company Name: YAMADA GREEN RESOURCES LIMITED
DMG & Partners Securities in a Feb 13 research report says: "2QFY12 net profit of RMB73 million (+79% y-o-y) was in-line with our projected RMB72 million as revenue growth of 89% to RMB218 million from a larger cultivation area of 5,614mu, was partially offset by GPM's drop of ~1ppt to 40.5% on an imperfect pass-through of higher raw material costs for fresh fungus segment.
"Share price returned +24% YTD and we expect strong 3QFY12 earnings growth of 51% to RMB97 million to provide next upside catalyst to share price performance. Due to a change in its financial year end to Jun, we adjust our FY12-FY13-FY14 earnings estimates to RMB181 million - RMB199 million-RMB201 million accordingly.
"We reduce our target multiple to 3.5x (old: 4.5x) on the back of weak sentiment towards small cap S-Chips counters, and roll it forward FYEJun13F earnings estimates to derive an unchanged target price of 32 cents. MAINTAIN BUY."
Company Name: YAMADA GREEN RESOURCES LIMITED
| Research House: DMG | Price Call: BUY | Target Price: 0.32 |
DMG & Partners Securities in a Feb 13 research report says: "2QFY12 net profit of RMB73 million (+79% y-o-y) was in-line with our projected RMB72 million as revenue growth of 89% to RMB218 million from a larger cultivation area of 5,614mu, was partially offset by GPM's drop of ~1ppt to 40.5% on an imperfect pass-through of higher raw material costs for fresh fungus segment.
"Share price returned +24% YTD and we expect strong 3QFY12 earnings growth of 51% to RMB97 million to provide next upside catalyst to share price performance. Due to a change in its financial year end to Jun, we adjust our FY12-FY13-FY14 earnings estimates to RMB181 million - RMB199 million-RMB201 million accordingly.
"We reduce our target multiple to 3.5x (old: 4.5x) on the back of weak sentiment towards small cap S-Chips counters, and roll it forward FYEJun13F earnings estimates to derive an unchanged target price of 32 cents. MAINTAIN BUY."
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