China Minzhong

abb,  did you know Maybank has also issued a report this morning. Target is $1.16.

Good report, which has triggered a run-up in Minzhong share price +3 cents to 79.5 cents. Still grossly undervalued.

Maybank pointed out :

Ø Minzhong’s share price has soared by 9% since last week, along with some other Chinese agricultural companies. Concerns of soaring food inflation in China could be the reason behind it.


Ø The Fed’s latest treasury purchase initiative (QE3) has triggered further concerns  over  China’s  inflation.  Already,  Chinese  fresh vegetable prices have increased by 24% YoY in August.


Ø  To  play  this  theme,  we  advocate Minzhong as a direct beneficiary of China’s  food inflation. If food inflation in China remains high, there is  a  high  chance  that  the  management’s  revenue  target  could be surpassed.

Already up over 35% on this counter...lots more upside left.
www.livetradingnews.com/china-minzhong-f...d-upgraded-86519.htm
Economist Shayne Heffernan has upgraded Singapore listed China Minzhong Food Corp Ltd to a strong buy with a 2013 price target of $2 SGD.
China Minzhong Food Corporation Limited (China Minzhong) is an integrated vegetables processor.
Its principal activities are those of investment holding and wholesale of health food. As of June 30, 2011, the Company had a customer base over 26 countries across four continents and had a network of suppliers of fresh and semi-processed vegetables in 14 provinces of People’s Republic of China.
It operates in Singapore, where it is primarily involved in investment holding, and the People’s Republic of China, where it is engaged in sales of processed products and fresh produce. The Company produces more than 20 species of vegetables, which include champignon mushrooms, black fungus, German chives, capsicums, king oyster mushrooms and Shanghai greens.

His name must be SuperBull. He also had a super high target for YZJ which failed to be achieved.

Quote 2010 short snippet from

www.livetradingnews.com/ebeling-hefferna...ipbuilding-23562.htm :

Shayne Heffernan of Ebeling Heffernan has issued a strong buy on Yangzijiang Shipbuilding with a price target of $2.80 SGD. Today the stock closed at $1.80 SGD.

Yes because China is in a bear market. We'll see what happens when the bull returns to China in future.
Barring some very special circumstances, one can't expect Yangzijiang to reach $2.80 when China is in a bear market. Conversely, in 2007, Yangzijiang's net profit was 15% of what it is now, yet it managed to reach a high of $2.87, its P/E was over 50 times! Why? Because Because China was in a bull market - the Shanghai Composite was at over 6000. And in bull markets forward P/Es tend to be much lower than trailing P/Es because estimated growth rates are very high - this extreme optimism is characteristic of a bull market. 
Now with the Shanghai Composite at 2000, how can one expect China Minzhong to reach $2 or Yangzijiang to reach $2.80? No, the tide has to change first - 90% of stocks follow the tide of the market. Yes occasionally you get a bit of outperformance like China Minzhong going up over 30% over the last couple of months, but this is nothing compared to what kind of prices you will see if Shanghai was in a bull market. 
The Shanghai Composite is now at all-time low valuations and won't remain at 2000 forever.  Yes everywhere everyone is telling you bad news about China and sentiment is at an all time low. Indeed the onslaught of negative pessimistic views is characteristic of a bear market. Views broadly reflect market sentiment - if it wasn't this negative the Shanghai Composite wouldn't be at its lowest since March 2009.
Yangzijiang is trading at a P/E of under 5 and Minzhong at a P/E of 3 and under - contrast this with 2007. China, like most emerging markets, has a very volatile stock market, and sentiment is everything, when the bull returns one day the contrast in valuations will be mind-blowing. 
No doubt things may even get worse for China before it gets better, no one knows for sure. But one day the bull will return. And until that day I will keep accumulating.  

87.5 cents !
Super S-chip. My purchase price was 67 cents. Still holding and waiting for S$1.00.