Yamada: Annouced that it has commenced a feasibility study of small scale cultivation of black fungus with cultivation plots measuring 86 mu, with an annual production capacity of approximately 2.8 tonnes.The cultivation of black fungus forms part of the grp’s continuous efforts to improve its range of self-cultivated products and capitalise on the cultivation knowledge, experience and expertise of the Management….
The investment, including rental expenses for the entire lease period, amounts to Rmb6.4m and would be funded from Grp’s internal resources. Transaction is not expected to have any material impact on the NTA and EPS of Co. for FY11….
We note that at current levels, stock trades at undemanding valuations at 6x FY10E PE vs SinoGrandness of 6.75x and China MinZhong of 9.1x, and stock remains a key benefirciary of rising agriculture prices.
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