Press Releases

Hong Kong, Feb 10, 2010 (ABN Newswire) - Piper Jaffray Asia Securities Limited has rated Fufeng (HKG:0546) (OTC:FFNGY) at "Overweight" and has raised its target price from HK $5.00 to HK $6.00 with the improved earnings estimates. Piper Jaffray Asia Securities Limited revised up its FY09E-11E earnings estimates by 10%-11%, as the securities had increased the ASP assumptions for MSG for 4Q09E and FY10E by 6% and 6%, respectively.

The securities anticipated that there would be 40%/35% YoY volume growth in FY10E/11E due to improving demand by the international oil-drilling industry (about 50% of sales) and capacity addition (+30%-plus in FY09E). The securities believed that Fufeng could maintain the segment margin at 37%-40% in FY09E-11E with the better-than expected MSG export prices and balanced supply/demand outlook, despite the potential hike in corn costs and its plan to lower pricing for gaining market shares costs and its plan to lower pricing for gaining market shares.

Piper Jaffray Asia Securities Limited predicted that xanthan gum to account for about 20%-30% of the company's profit in FY10E-11E, up from ~15% in FY09E.

Please find attached Research Report:
http://www.abnnewswire.net/media/en/docs/62249-Fufeng_PJ_0202.pdf