Yamada: Annouced that it has entered into agreements with Villagers’ Committees in Zhangping City to lease shiitake mushroom cultivation bases measuring approximately 842 mu for a period of 17 yrs and will be used btwn 25 Sept and 25 Apr each year starting from 25 Sept 2011. Deal bring’s Co’s total shiitake mushroom cultivations to 5,134 Mu from 4,292 mu, ahead of grps schedule to double cultivation output by 2012…..
Expansion of mushroom cultivation bases is expected to contribute positively to EPS of Co. but is not expected to have any material impact on NTA for FY11. We note that valuations appear compelling, with grp trading at 2x FY11E P/E vs peers simple average of 8.1x.
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