Piper Jaffray Asia Securities Limited has rated Fufeng (HKG:0546) at "Buy" and has raised its target price from HK $3.70 to HK $4.10 after Fufeng announced its 2009 interim results. Fufeng posted first six months net profit at RMB 354 million, up 312% when compared with the same period of last year.
SBI E2-Capital has rated Fufeng (HKG:0546)(PINK:FFNGY), at 'buy', and set its target price at 4.51 Hong Kong dollars. The securities dealer deems that the cost advantage and capacity expansion will be the growth momentum of Fufeng in the following several years, which MSG will be accounting for 30% to 35% and xanthan gum accounting for 45% to 60% long term market share.
US stocks ended the day higher overnight after a sharp slump in the previous trading session. The rebound was helped by better-than-expected earnings from retailers such as Dow component Home Depot.
Fufeng Group Limited ("Fufeng" or "the Company", together with its subsidiaries collectively known as "the Group"; HKG:0546), a leading vertically integrated manufacturer of corn-based biochemical products in China, today announces its outstanding interim results for the six months ended 30 June 2009.
Piper Jaffray Asia Securities Limited upgraded Fufeng (HKG:0546) to BUY rating after meeting with its management. Projected the new target price is HK$3.70 based on 8x FY09E P/E and volatility is high. They increased their FY09 and FY10 earning estimation by 74% and 86% to Fufeng as the lower production cost in the new Inner Mongolian plant. And operating margin in FY09 will be increased to 17.5% and higher MSG output in FY10E.
US stocks surged overnight as the Federal Reserve said the economy was leveling out, and it left interest rates unchanged at the end of its two-day policy meeting.
US stocks fell for a second day on Thursday as investors worried over the key employment figures, which are scheduled to release on Friday. Most economists expect the data will show the unemployment rate climbed to 9.6 per cent, from a 26-year high of 9.5 per cent in June.
