Fufeng Group (HKG:0546) Research By Piper Jaffray
Hong Kong, Mar 25, 2010 AEST (ABN Newswire) - Fufeng's FY09 net profit rose 215% YoY to Rmb928mil, 6% and 9% above market consensus and our expectation, respectively. We raise our FY10E-11E earnings estimates by 12%-20% on higher sales volume assumptions, which could offset the impact of lower ASPs and profit margins. Our confidence in Fufeng's long-term growth prospect and capability to gain market share is further boosted by its latest capacity expansion plan (+30%) in FY11E. Hence we maintain our OW rating and raise our PT to HK$6.70 to reflect our higher earnings estimates.
About Fufeng Group Limited
Fufeng Group (HKG:0546) is the world's largest producer of MSG, xanthan gum and a major supplier for a series of bio-fermentation products. The main products of the Group are food additives, animal nutrition, colloid and high-end amino acids. In fiscal 2016, Fufeng generated sales of approximately RMB11.2 billion and profit attributable to shareholders of about RMB1.09 billion. For more information, please visit our website www.fufeng-group.com
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