China Minzhong: FY10 results, slightly below mkt expectations, but still decent. Revenue +35% yoy to RMB 1.4bn, on higher sales volumes of both processed and fresh vegetables produce. Gross margins improved due to shift toward higher margin product mix. Net profit +28% to RMB 368m…
Mgt remains positive on outlook, expects population growth, increasing urbanization and rising affluence to drive global consumption demand for both fresh and processed vegetables. Hints at making use of RMB 1bn cash war chest to grow via M&A. Stock trades at ~9.4x PE, vs peer avg of ~12x PE. DMG had Buy call with $1.68 target, just prior to results.
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