China Minzhong   

China Minzhong Food forum

Did you enter?

srichipan      ( Date: 08-Jan-2013 18:51) Posted: i see. thanks! i probably re-enter once it cross 0.90. Just to be safe  Peter_Pan      ( Date: 08-Jan-2013 18:46) Posted: If they are going for strong buying, any short positions are a conflict of long positions

 

Still not too late to jump in. TP: 1.00 and above. Good luck. 

 

CHINAMINZHONG IN-DEPTH STUDY ON 09 JAN 2013

Contributed by Jay Chia

---

10-Jan

 

 

This is a very low PE stock. More upside.

oldflyingfox      ( Date: 10-Jan-2013 11:26) Posted: Look like it will go above $1 before any  meaningful correction. vested.

 

Look like it will go above $1 before any  meaningful correction.

vested.

 

Enjoy...More to come. Riding high on the China-Wave.

 

CHARTED TERRITORY


10 Jan 2013 OCBC
China Minzhong - More upside ahead after bullish break

Resistance:                                            S$1.02
Support:                                                      S$0.86

Last Closing Price:                    S$0.89
52-week Px Range:                S$0.53 - S$1.175

SGX Code:                                                K2N
BLP Code:                                                  MINZ SP Equity

 

90.5

gold rush

gd luck dyodd

 

Investment Highlights

·                  Maintain BUY and target price of S$1.00, based on 3.1x FY14F PE, pegged to Singapore-listed peers’ average.

·                  Positive share price catalysts include PE expansion, share buybacks or even a dividend payout, which the company has been considering since the last financial year.

·                  We increase our FY13 net profit forecast by 1.6% to Rmb788.5m on higher revenue despite lower gross margin due to the higher cost of production.

What’s New

·                  We met up with the management of China Minzhong Food (CMZ) recently for an operational update. 

·                  In the cultivation business, we expect revenue to grow 18.9% yoy in FY13, driven by an improvement in yield as its farmland matures over the next two years. Although this is significantly lower than the growth in FY12, it is expected as the group did not add any new agricultural farmland for the year. In FY12, revenue for this segment jumped 64.5% yoy as the group enjoyed full-year contribution from the doubling of the farmland in FY11.

·                  In industrial farming, the group now produces an average of 28 tonnes of king oyster mushrooms per day. With an ASP of Rmb12/kg, this segment can contribute Rmb125m in revenue, or 4.0% of FY13’s total revenue.  CMZ has recently incorporated a wholly-owned subsidiary in  Jiangsu,China, which owns a 100-mu site for  industrial farming.  Discussions on expansion plans are still ongoing but we expect revenue contribution from this subsidiary in FY14. 

·                  On the processed food segment, we expect a revenue growth of 30% yoy this year, driven by an increase in production from the new industrial park. The industrial park will have three times the current capacity and CMZ will slowly ramp up production capacity over the next two years. However, we expect gross margins to be compressed in FY13/14 as the group will only reap economies of scale upon full utilisation but meanwhile have to incur overheads and depreciation expenses in the initial phase.

·                  CMZ has also diversified into other markets for processed food, such as  Japan  and  Taiwan, to mitigate the higher credit risks from European clients. Although this will benefit the group’s financials in the longer term, we expect lower average selling prices and a compression in margins inevitably to gain market share. 

Share price catalysts

·                  Management has been authorised to carry out share buyback of up to 10% of issued capital. Although the group has yet to initiate the share buybacks, any smallest purchase from the open market would represent management’s confidence on the company’s prospects. 

UOB Kay Hian 

 

hit high of 90c

 

Don't miss the cny wet-market woh...

 

UOB Kay Hian has issued a BUY call with Target Price of $1.00.

 

Riding the China Wave. Share Buy-Back.

 

No $2 No Sell. 

:p 

 

88.5!

gd luck dyodd

 

As long as you are comfortable.

srichipan      ( Date: 08-Jan-2013 18:51) Posted: i see. thanks! i probably re-enter once it cross 0.90. Just to be safe  Peter_Pan      ( Date: 08-Jan-2013 18:46) Posted: If they are going for strong buying, any short positions are a conflict of long positions

 

i see. thanks! i probably re-enter once it cross 0.90. Just to be safe 

Peter_Pan      ( Date: 08-Jan-2013 18:46) Posted: If they are going for strong buying, any short positions are a conflict of long positions. srichipan      ( Date: 08-Jan-2013 18:39) Posted: yah. foreign houses buying means shortist converted?

 

If they are going for strong buying, any short positions are a conflict of long positions.

srichipan      ( Date: 08-Jan-2013 18:39) Posted: yah. foreign houses buying means shortist converted?  Peter_Pan      ( Date: 08-Jan-2013 18:33) Posted: I have already said earlier, foreign houses are buying this stock. In fact, not only foreign houses, local houses are also buying big time

 

yah. foreign houses buying means shortist converted? 

Peter_Pan      ( Date: 08-Jan-2013 18:33) Posted: I have already said earlier, foreign houses are buying this stock. In fact, not only foreign houses, local houses are also buying big time. srichipan      ( Date: 08-Jan-2013 18:26) Posted: I used to vest in this counter but ran out of patience when I see shortists in it. i know its dangerous but ppl out there are doing it. just look at the chart. it hits 0.86 twice and got shot down immediately. So i'm curious how you know they have converte

 

I have already said earlier, foreign houses are buying this stock. In fact, not only foreign houses, local houses are also buying big time.

srichipan      ( Date: 08-Jan-2013 18:26) Posted: I used to vest in this counter but ran out of patience when I see shortists in it. i know its dangerous but ppl out there are doing it. just look at the chart. it hits 0.86 twice and got shot down immediately. So i'm curious how you know they have converted Peter_Pan      ( Date: 08-Jan-2013 18:19) Posted: It is highly dangerous to short this stock. Don't believe, can try