the infuse the asset of the hexi corridor area for the 7 home farm

Companies with agricultural and chemical business is given priority to, the potatoes, MBT Kipimo clog hops (600090) planting and processing with relative monopoly position on gross margins stability. At present the company to gansu agricultural reclamation directional seasoned has finished, the infuse the asset of the hexi corridor area for the 7 home farm, will expand the company agricultural industrialization scale, promoting company profitability. Secondary market, the stock funds have recently main signs to fill, considering the central no.1 document benefit farming policy, investors about to publish recent pay proper attention. (haitong securities (600837) DengQinHua)
Cofco tuen 600737) : (continued downturn sugar-cane up well ketchup
Beet sugar depending on prices to ascend, encourages business performance. The balance between supply and demand condition: sugar-cane keep in 1500 tons, keep supply approximately 1350 tons demand. Sucrose are sugar, sucrose mainstream product price basic decided to other sugar prices. Sugar-cane industry concentration is not high, in addition to the China (yield nanpu 200 million tons) individual enterprise production super million tons, other yield were not very high. The company beet sugar production, 46 million tons in 2009, the seventh, beet sugar first. Due to limited, squeeze area from long-term see depending on prices rising. Sugar prices this year 5,000 yuan per ton, breakthrough with company annual beet sugar yield 46 million tons of sugar beet sugar calculate, it is expected that the company business earnings 92 million - 1.2 billion yuan. The company has been seeking in recent years in the south, but due to annex other sugar refineryeach tightly control, local government failed to overcharge sugar refineryeach, but the company does not give up in this effort.
By DaXiaoNian influence, ketchup, production limited price increase expected this year, performance below year-on-year. Company production 46 million tons in 2009, ketchup, 27 million tons, the main export inventory. MBT Karani ,

Heinz, unilever and nestle and other companies accounted for about company of sales of nearly one-third. Supply and demand by global impact, ketchup prices across low. At the same time because many of the small factory foreword competition, now $600 lowest export ketchup dramatically lower than/ton, international market 800 - $900 per level, also severely affect company product export prices. Material company currently own 23 million acres of tomato plant base, can satisfy the annual about 25 percent of material requirement, other all needs to outsourcing. At the same time the tomato ketchup business ShouZhai links and upstream to downstream customers are not strong bargaining power. Judging from the current price movements, we expect ketchup business results may be below year-on-year.
Our point of view
The company belongs to a typical agricultural companies by product cycle impact, very strong. Beet sugar basic price changes with sugar price fluctuation; Ketchup business mainly by the world prices on material supply and demand influence, MBT Kisumu ,to outsourcing 75%. From this year, we can see the price for this year, the company performance ketchup, even bigger influence may generate profit comprehensive sugar industry this year, as the previous overall performance may also, temporary give company "neutral" investment rating. (hongyuan securities (000562) sujing was however)