China Minzhong Food Corporation

[Nick]

CHINA MINZHONG’S 1H FY2011 NET PROFIT ROSE 43.3% TO RMB208.7 MILLION

http://info.sgx.com/webcoranncatth.nsf/V...70010B518/$file/Minzhong_1HFY2011_PressRelease_14Feb11.pdf?openelement [Press Release]

http://info.sgx.com/webcoranncatth.nsf/V...7000FE0F4/$file/Minzhong_2Q2011_Results_14Feb11.pdf?openelement [SGX Announcement]

http://info.sgx.com/webcoranncatth.nsf/V...7001203CB/$file/ChinaMinzhong_1HFY2011_ResultsPresentation_14Feb11.pdf?openelement [PPT Slides]

http://info.sgx.com/webcoranncatth.nsf/V...7000F7B14/$file/Annt-UseofIPOProceeds-14Feb2011.pdf?openelement [Acquisitions]

China Minzhong continues to grow at amazing speed backed by increasingly high demand for vegetables and growing cultivation space and processing plants. It experienced growth in revenue, profitability and margins. Operating cash-flow dipped slightly but I expect it to be boosted in 2H 11 when cash proceeds from 2Q and 3Q sales are recognized. Being an agriculture company, its profits and cash-flow are seasonally so do not extrapolate forward. Minzhong continues to generate good cash-flow and sits on close to RMB 1 billion net cash. GIC has a 17% stake in the company.

Major risk will be natural disaster which may impact its ability to cultivate vegetables. Not too sure whether the food price controls will lead to a margin squeeze. Management remains bullish and states that the price control consist primarily of subsidies to lower cost of production and distribution. Let's see whether it continues to sustain its amazing growth rates.

(Vested)

[AAA]

The annual report shows that LTA owns 290,000 shares. I am surprised that statutory board could invest its fund this way.

[Nick]

The annual report shows that LTA owns 290,000 shares. I am surprised that statutory board could invest its fund this way.

I guess they decided to follow GIC in haha !

Though it is a pretty small investment.

[AAA]

97.4% of shreas are held by top 10 shareholders as at 13 Sep 10 - from info. in AR10. CMIA has started to sell.

[Nick]

97.4% of shreas are held by top 10 shareholders as at 13 Sep 10 - from info. in AR10. CMIA has started to sell.

That's pretty normal. Bulk of the public float shares held by nominee account.

CMIA has been forced to sell their shares since last year due to their own legal troubles. I was fortunate to be able to scoop up some during their fire-sale haha !

CMIA legal prob - http://www.agri-biz.com/SingleNews.aspx?...ode=672680

[mikh]

I find their "demand driven" model quite interesting. Wonder how unique that is.

Also surprised to see LTA there. This maybe considered low risk investment to park extra cash perhaps. Income maybe came from fines incurred by fines incurred by transport providers le

[Nick]

China Minzhong surged by over 7% today to close at its all time high of $1.68 which represents a 40% return to its IPO shareholders.

http://www.remisiers.org/cms_images/16_F...atters.pdf [DMG]
http://www.remisiers.org/cms_images/Minz...502111.pdf [CIMB]

I believe Standard Chartered has initiated coverage with a $2.18 TP. Quite a large number of research houses is covering the company but I don't have most of their current set of reports yet.

(Vested)

[Nick]

CHINA MINZHONG ADDED TO FTSE ST CHINA TOP INDEX

Another step towards creating more shareholder value through increased
investorsÂ’ interests and enhanced shares liquidity going forward

http://info.sgx.com/webcoranncatth.nsf/V...30033A2DA/$file/PressRelease-ChinaMinzhongAddedtoFTSESTChinaTopIndex_14Mar11.PDF?openelement

(Vested)

[Nick]

I chanced upon Kim Eng Research videos in Youtube. It contains videos of their organized meeting with various companies management over the past year. There is a video detailing an hour long meeting with China Minzhong management consisting of a presentation followed by Q&A session. I have not watched the whole video yet so I can't comment on how insightful it is.

Meeting with China Minzhong: http://www.youtube.com/watch?v=BjT-1SWnuaA [Part 1 of 7]

Part 2-6 can be viewed by clicking the links found next to the video.

China Minzhong closed at $1.62 with a market capitalization of S$0.87 billion.

(Vested)

[Nick]

China Minzhong Food

Overweight | S$1.65
04:46 AM Mar 30, 2011

JP Morgan raises China Minzhong Food's (K2N.SG) target to S$2.00 from S$1.70 and keeps its Overweight rating. JPM raises its net profit estimates for FY11E/FY12E/FY13E by 3.6 per cent/7.5 per cent/11.7 per cent respectively. It adds, the company has "strong corporate transparency".

http://www.todayonline.com/Business/Stoc...zhong-Food

(Vested)