Cofco Meat Holdings 1610

[winston]

not vested

Dec 15, 2016

COFCO Dutch Subsidiary Reportedly Found US$150M Hole in Accounts

Financial Times reported that Nidera, a Dutch subsidiary of COFCO, said on 14 December that an accounting issue was found during the balance sheet review, and it is reported that a US$150 hole was found.

Sources said the incident involved in prepayment transactions in the Brazilian unit of the company, where a trader pays a supplier for its commodities before these commodities are delivered.

Source: AAStocks Financial News

[winston]

not vested

Dec 5, 2016

<Research Report>M Stanley Initiates COFCO MEAT at Overweight; Expects 2016-18 CAGR 18%

COFCO MEAT (01610.HK)'s sponsor Morgan Stanley issued a report and initiated the stock at Overweight, with a target price at $2.5.

The stock is trading at 6x 2017 P/E, with attractive valuation as compared with peers.

The 2016-2018 CAGR is expected to be 18%, in which capacity expansion and operating leverage could drive further upside.

The group's profitability is likely to improve with lower unit costs.

Source: AAStocks Financial News
Web Site: www.aastocks.com

[winston]

Analysts bullish on leading pork producer Cofco Meat as consolidation continues across sector

Pork makes up more than 60 per cent of the nation’s total meat consumption

Cofco Meat Holdings, China’s fourth largest pig producer, in the world’s largest pork market

Cofco still holds a “Buy’ rating, even thought the consolidation is ultimately likely to mean lower meat prices, adding the company has a strong shareholder base as well as resilience of pork prices in the long run.

“Despite the hog price down-cycle starting from mid-2016, we remain positive on Cofco Meat’s earnings outlook and expect it to deliver an 8 per cent recurring earnings during 2016-18”

The only things standing in the way of a successful pork season, however, say analysts would be an outbreak of hog disease, and rising corn (feed), according to the report.

Source: SCMP

http://www.scmp.com/business/article/20 ... -continues

[winston]

not vested

COFCO MEAT Soars 7.5%; Expects Full Year Profit to Leap 4.6x

COFCO MEAT (01610.HK) reclaimed 50MA ($1.58) this morning and leaped up to 14% to peak at $1.68. It last stood at $1.58, rebounding 7.5%, on volume of 6.87 million shares.

COFCO MEAT issued a positive profit alert, expecting that the profit after biological fair value adjustments for the twelve months ended 31 December 2016 (Year 2016) will be no less than RMB850 million, representing a year-on-year growth of no less than 460%, given the year-on-year increase of biological assets stock of the group at the end of the Year 2016 and supported by fair price.

Source: AAStocks Financial News

[winston]

vested

Nov 01. 2016

Cofco Meat Misses Best-Before Date

By David Fickling

Cofco Corp. has a 28 percent stake,

As a commodity business, Cofco Meat operates on prosciutto-thin margins, with gross profit averaging just 3.5 percent of sales over the past three fiscal years.

Source: Bloomberg

https://www.bloomberg.com/gadfly/articl ... umping-ipo

[winston]

vested

There are a number of Pre-IPO and Cornerstone investors, who will hold a total of some 56% of the Group’s enlarged share capital upon Listing. These investors may sell off their interests
after the six month lock-up period.

For those Pre-IPO investors, they acquired their respective interests at deep discount from 32%
to 62% when compared with the IPO pricing range, which would lead to huge paper gain upon
the Group’s Listing.

https://www.easecurities.com.hk/en/Rese ... o01610.pdf

[winston]

not vested

COFCO MEAT Dives Almost 8% on Purported Shareholder Unloading

COFCO MEAT (01610.HK) registered 416 million shares in six non-automatched trades on board at $3.02 per share before market open today, involving over $1.256 billion.

The stock dived 7.8% to $3.07, on volume of 502.6 million shares and turnover of $1.522 billion.

Rumor had it that four institutional shareholders of COFCO MEAT intended to unload 8% stake in the company at $3.02-3.1 per share.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>CICC Initiates COFCO MEAT (01610.HK) at Outperform with $3.6 TP

CICC initiated COFCO MEAT (01610.HK) at Outperform with a target of $3.6, while projecting the firm's 2019-20 EPS at RMB0.1 and RMB0.57 with a CAGR of 212.6%.

The broker suggested COFCO MEAT's 2020 results will be driven by rising hog prices.

Overall, the broker forecast the firm’s hog shipment volume at 2.2 million/ 3 million units for 2019/20, representing a change of -13.7%/ +36.4% YoY.

Source: AAStocks Financial News

[winston]

not vested

COFCO Meat quarterly hog production plunges

State-backed COFCO Meat (1610) announced its hog production volume for the quarter ended September 30 plunged by 60.4 percent from a year ago to 265,000 units, with the fresh pork sales volume down 28.1 year-on-year to 35,000 tons.

The average price for finishing hogs in the third quarter was 22.22 yuan per kilogram.

Shares of the company slid 2.69 percent to HK$2.53.

Source: The Standard

http://www.thestandard.com.hk/breaking- ... 1016&sid=2

[winston]

not vested

COFCO MEAT(1610)

Analysis：

COFCO Meat`s business includes feed production, pig breeding, slaughtering, production and distribution of fresh pork and meat products, and import and sale of frozen meat products.

The company is one of the first companies in China to adopt large-scale pig farming. In the recently released CPI index data, pork prices rose by 69.3% year-on-year in September.

COFCO Meat released the 2019Q3 Operational Express：
1. Live pig production was 265,000 heads, down 60.4% year-on-year
2. Fresh pork sales were 35,000 tons, down 28.1% year-on-year.

Although the amount of live pigs fell sharply, in the third quarter of 2019, the company`s average price of commercial pigs was 22.22 yuan / kg, much higher than the company`s average pork price of 11.41 yuan / kg in the first quarter of this year and the average price of pork in the second quarter of 13.9 yuan. /kg.

It is expected that the performance of the company in the third quarter will be significantly better than the first half.

Strategy：
Buy-in Price: $2.80, Target Price: $3.60, Cut Loss Price: $2.30

Source: Phillips