Monday, October 3, 2011

China Minzhong

China Minzhong: Following CIMB and DBSV recent Buy Calls, Macquarie maintains O/p call with TP $2.35. House reiterate view that Minzhong is a high quality Co. that has significantly better corporate governance and more transparent operations than many of its China agriculture peers.

For value hunters, pick is MINZ, stock now in deep value with a P/B of 0.9x vs and ROE of 22%. 12mth forward PER is 3.2x. With no debt on the balance sheet, expect EBIT to grow 40% this year and confident that MINZ remains a quality Co. with strong earnings growth prospects.

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