SBI E2-Capital rates Fufeng (00546.HK) 'BUY'
Hong Kong, Aug 19, 2009 AEST (ABN Newswire) - SBI E2-Capital has rated Fufeng (HKG:0546)(PINK:FFNGY), at 'buy', and set its target price at 4.51 Hong Kong dollars.
The securities dealer deems that the cost advantage and capacity expansion will be the growth momentum of Fufeng in the following several years, which MSG will be accounting for 30% to 35% and xanthan gum accounting for 45% to 60% long term market share.
Through the adoption of new technology and cost advantage from Inner Mongolia of Fufeng, the gross margin of MSG is estimated to 15% higher than Shandong-based peers.
Sales in 2H09 will be boosted as high volume of inventories by using aggressive price strategy and management is confident on 2H09 performance.
SBI E2-Capital predicted the net profit of Fufeng in FY2009, 2010 and 2011 to rise 104.7%, drop 27.1% and rise 57.6%, respectively, to 603.2million yuan, 503.1million yuan and 692.9million yuan.
For the complete Fufeng Announcement, please click on the link below:
http://www.abnnewswire.net/media/en/docs/61289-HKG-0546-Fufeng-190809.pdf
About Fufeng Group Limited
Fufeng Group (
HKG:0546) is the world's largest producer of MSG, xanthan gum and a major supplier for a series of bio-fermentation products. The main products of the Group are food additives, animal nutrition, colloid and high-end amino acids. In fiscal 2016, Fufeng generated sales of approximately RMB11.2 billion and profit attributable to shareholders of about RMB1.09 billion. For more information, please visit our website www.fufeng-group.com
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