Shares of Singapore-listed Chinese vegetable producer China Minzhong (CMFC.SI) surged as much as 7% on Tuesday after the company said it had opened its new processing facilities in China and it saw no slowdown in demand for vegetables.
At 9:56 a.m., China Minzhong shares were up 5.6% at $0.755, outperforming the broader Straits Times Index <.FTSTI> which was 0.2% lower.
At 9:56 a.m., China Minzhong shares were up 5.6% at $0.755, outperforming the broader Straits Times Index <.FTSTI> which was 0.2% lower.
“This announcement reinforced our view that their earnings are still expected to be strong in the next 2-3 years,” said Eric Ong, an analyst at Singapore brokerage Kim Eng.
“One of the key drivers would be the expanded capacity, and vegetables are after all one of the key food staples, so we don't see a big slowdown in the overall demand,” he added.
China Minzhong said on Tuesday it had opened a new industrial park in China, which has around three times the company's current processing capacity and is slated to reach full utilization within the next three years.
The firm also said it sees no slowdown in demand for vegetables so far despite the Europe debt crisis and the global economic uncertainty, and expects its export order book to be higher in 2012 fiscal year compared with 2011 fiscal year.
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