China Minzhong

China Minzhong: DBSV downgrades to HOLD from BUY and slashes TP to $ 0.60 (Prev S$ 1.45). House expect weak fundamentals set to persist, adding that grp is entering consolidation phase; Unexciting outlook with growthslashed to 3%/8% for FY13/FY14. Add that the slower-than-expected flushing out of crops due to the winter delay in FY12 and persistently higher costs are likely to depress margins going forward. Believe grp is heading into consolidation mode as mgt slows down farmland expansion and concentrates on attaining optimal operating efficiencies. House find a less aggressive growth outlook unexciting. On the back of higher costs and the less exciting outlook, house assume declining gross margins from 38% in FY12 to 35.3% in FY14F, will lead to muted growth of 3%/8% for FY13F/FY14F.