Mengniu dairy industry fell a small price to buy a high rating of 21.2 yuan

With both state-owned enterprises and foreign capital strength of new shareholders and the latest fund-raising measures, Mengniu dairy industry today rebounded, half a day now fell 0.67% to 18.06 Hong Kong dollars, 5.35 million shares.　　The report said it gave the unit a buy rating, with a new target price of HK $21.2, which is 17% higher than the market premium. Fu means, because Mengniu and Cofco constitute strategic alliance, and consumer confidence in dairy products is recovering, so the Mengniu sales forecast, and its 09 and 2010 earnings forecasts were increased by 20% and 25% respectively, to RMB 738 million and 975 million yuan.　　It is considered that the valuation of Mengniu is reasonable at the beginning of the profit recovery cycle.　　Dafo that the 3.1 billion yuan net income of Mengniu's IPO will significantly enhance the company's cash position, with the increase of $1.2 billion from the end of 08 to $4.3 billion will help Mengniu to increase its capital expenditure to improve its quality control to a rigorous level and expand its upstream business capacity. In terms of business development, the expected acquisition will bring synergy between Cofco and Mengniu, and Mengniu can benefit from the advantages of COFCO as a state-owned enterprise to restructure its upstream suppliers and to further develop the business of dairy-related foods through the COFCO business development platform.