Yamada

Yamada / Agri: Grp announced that profit is expected to be significantly lower for 2Q13 vs the corresponding qtr yoy. Lower profit was mainly attributable to lower yield and lower than expected prices of fresh shiitake mushroom coupled with the increase in raw materials cost of synthetic logs for 2Q13 vs 2Q12. Profit guidance is based on a preliminary review of the unaudited financial results of the Grp. Further details of the Grp’s performance will be disclosed when the Group finalises and discloses its unaudited consolidated financial results for 2Q2013. Details of the Grp’s results in 2Q2013 are expected to be released on or before 8 Feb13. We caution that while China Minzhong and Sino-Grandness are more diversified as opposed to Yamada, the grp’s weak ASPs for mushrooms this qtr, could spark some concerns on ASPs for its 2 peers in their upcoming qtrly results.