Yamada Green Resources rated 'buy' by DMG

Stock Name: Yamada
Company Name: YAMADA GREEN RESOURCES LIMITED

Research House: DMG

Price Call: BUY

Target Price: 0.30

DMG & Partners Research in a May 15 research report says: "3QFY12 net profit of RMB82 million (+27% y-o-y; +11% q-o-q) was below our projected RMB97 million due to wet weather that affected mushroom yield, as well as higher costs of production.

"Revenue was up 48% to RMB243 million (our estimate: RMB273m) from a larger cultivation area of 5,614mu (2QFY11: 2,614), while GPM dipped ~6ppt to 39% on an imperfect pass-through of higher raw material costs for fresh fungus segment.

"We factor in a weaker than expected 3QFY12 performance, and reduce our FY2012-2013 earnings estimates by -11% and -12% to RMB162 million and RMB176 million respectively. Target price is cut to 30 cents (previously 32 cents), pegged to 3.5x FYEJun13F earnings estimates. MAINTAIN BUY."

DMG cuts target on Yamada

Stock Name: Yamada
Company Name: YAMADA GREEN RESOURCES LIMITED

Research House: DMG

Price Call: BUY

Target Price: 0.30

DMG & Partners Securities cut its price target on mushroom grower Yamada Green Resources to $0.30 from $0.32 and maintained its buy rating.

Yamada shares have risen around 8% so far this year

Yamada’s third-quarter net profit of 82 million yuan ($16.5 million), below DMG’s projected 97 million yuan, was due to wet weather that affected mushroom yield, as well as higher costs of production.

DMG reduced its earnings estimates by 11% for Yamada’s 2012 fiscal year to 162 million yuan and by 12% for 2013 to 176 million yuan.

Yamada Green Resources rated 'buy' by DMG

Stock Name: Yamada
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."

Yamada jumps on strong earnings

Stock Name: Yamada
Company Name: YAMADA GREEN RESOURCES LIMITED

Research House: DMG

Price Call: BUY

Target Price: 0.32

Shares of Singapore-listed Chinese mushroom grower Yamada Green Resources

soared by as much as 12% on Monday after reporting a jump in quarterly earnings, reported Reuters.

By 10:14 a.m., Yamada’s shares were 9.5% higher at $0.23 with more than 6.0 million shares. This was 3.6 times the average daily volume traded over the last five sessions.

On Friday, Yamada reported a 78.6% rise in October-December net profit to 73.2 million yuan ($14.6 million) from a year ago boosted by strong demand for its fungi products.

Brokerage DMG & Partners said Yamada’s results were in line with its estimates, but it expects its net profit in this quarter to grow by 51% to 97 million yuan, which will provide more upside to its share price.

The brokerage has a buy rating on the stock and a target price of $0.32.

Yamada Green Resources rated 'buy' by DMG

Stock Name: Yamada
Company Name: YAMADA GREEN RESOURCES LIMITED

Research House: DMG

Price Call: BUY

Target Price: 0.32

DMG & Partners Research in an Aug 16 research report says: "2Q11 net profit of RMB7.4 million (+12% y-o-y; -89% q-o-q) was above our RMB5 million projection amid a seasonally low quarter as a result of higher 2Q revenue of RMB55 million (our estimate: RMB48 million) with RMB5 million maiden contribution from black fungus.

"With new farmland acquisition of 840mu in Jun11, we revise our farmland assumption up to 5,134mu, resulting in higher FY11F-FY12F earnings estimates of RMB146 million-RMB193 million respectively. However, we reduce our target multiple to 4.5x FY11F P/E on the back of weak sentiment towards small cap S-Chips counters.

"We continue to expect strong 4Q11 net profit growth of 78% to RMB72 million to provide the next upside catalyst, though share price is likely to remain flattish during a seasonally low-key 3Q. Target price reduce to 32 cents. MAINTAIN BUY."

Yamada Green Resources rated 'buy' by DMG

Stock Name: Yamada
Company Name: YAMADA GREEN RESOURCES LIMITED
Research House: DMG

DMG & Partners Securities in an Apr 19 research report says: "Yamada Green announced that it has entered into various agreements to lease shiitake mushroom cultivation bases measuring 1,678 mu.

"The lease agreements are for a period of 17 years and the Group is entitled to use each plot of the cultivation bases between 25 September and 25 April each year starting from Sep 28, 2011.

"Total investment, including the construction costs of infrastructure at shiitake mushroom cultivation bases, first year annual rental payment and rental prepayments for approximately 13 years, amounts to RMB24.0m, which will be funded by the net proceeds from its IPO.

"We maintain our estimates due to immaterial differences arising from the additional 260mu. Target price of 37 cents, pegged to 6x FY11 P/E. MAINTAIN BUY."