Yamada

Yamada: (Key feature from Edge) Rev set to surge in 2Q as plantation, sales network expand.

Co. saw 1H11 rev, +31.8% yoy at Rmb 218.6m, while net profit at Rmb70.4m, +16.9% yoy. Expect top-line to double in 3mths to Dec as mushroom prices are on the rise, coupled with enlarged planting area and expanded distribution network. Grp has also change financial yr end to June, to reflect its business cycle. DMG maintains Buy Call with $0.32 TP, tipping grp’s expanded cultivation to be the key drive of rev growth.