DMG & Partners Research, Nov 19
MAINTAIN "buy". We tweak our revenue assumptions given the company's good Q3 FY13 performance. Our FY13 earnings estimate is raised to CNY426.6 million from CNY387 million. We note that SFGI (Sino Grandness) had higher receivables (CNY983 million) at end-Q3 FY13 as it extended credit terms to some customers, and had a negative operating cash flow in nine-month FY13. plans for an IPO of its beverage business are on track. Our SOP-based (sum-of-parts) TP of S$0.88 assumes GF (Garden Fresh) will achieve a profit target of CNY250 million, and a 4.0x FY13 forecast PE for its canned food business. Our TP implies a PE of 6.2x for FY13 forecast (group earnings), with a 17 per cent upside from current levels.
BUY
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