China Minzhong

China Minzhong: JPM overweights with TP$2.00 up from $1.70. Co deserves valuation premium due to
1) continuous focus on high margin vegetable products,
2) rapid expansion of cultivation base and processing capacity and
3) an integrated business model…

Co is a beneficiary of food inflation, as it is structurally difficult to implement price controls on vegetables without compromising farmers’ income, unlike other food items. Other positives are as strong execution, good growth profile and clear corporate disclosure.