Piper Jaffray Asia Securities Limited rates Fufeng (HKG:0546) "BUY"
Hong Kong, Aug 20, 2009 AEST (ABN Newswire) - Piper Jaffray Asia Securities Limited has rated Fufeng (HKG:0546)(PINK:FFNGY) at "Buy" and has raised its target price from HK $3.70 to HK $4.10 after Fufeng announced its 2009 interim results. Fufeng posted first six months net profit at RMB 354 million, up 312% when compared with the same period of last year.
The securities anticipated that capacity expansion will be the driving force of Fufeng in the following years where MSG segment sales volume output will increase by 14% CAGR in FY 2010 and 2011 where Xathan gum's revenue and volume to grow at 23% and 26% CAGR in FY 2009 and 2010, respectively.
Due to government subsidy and cost advantage of Inner Mongolia Plant, it is expected that operating margin to drop by 2ppt to 16.3% in FY 2010.
Piper Jaffray Asia Securities Limited predicted that the net profit of Fufeng in FY 2009 to grow at 132%, 2010 and 2011 to grow at 12% respectively owing to lower effective tax rate.
Download the report from the following Link:
http://www.abnnewswire.net/media/en/docs/61299-Fufeng_Group_20090819.pdf
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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