November 8, 2007

High price forecast for China's Yurun Food

Analyst Macquarie Research Equities said it is raising its target prices on China Yurun Food are raised from HK$15.00 (US$1.93) from HK$13.00 (US$1.67) due to a drop in hog prices.

The firm, in a statement, also said it has also increased the company's earning per share estimates for 2007/09 by 21 percent, 16 percent and 9 percent, respectively to "reflect the larger capacity expansion plans after the recent share placement and the faster-than-expected fall in hog prices."

Macquarie added that it is maintaining its "outperform" recommendation as it picks Yurun as the top company in China's agriculture sector in terms of "food plays."