Mengniu Dairy Rose 3% Morgan Stanley high target price 50% to 22 yuan

Mengniu Dairy Gaokaigao Walk this morning, the share price is now up 3.43% to 17.5 Hong Kong dollars, deal 690,000 shares.　　The Morgan Stanley report said it maintained its overweight rating and raised its target price from HK $14.8 to nearly 50% to HK $22, a premium of 26% per cent. Morgan Stanley said sales of Mengniu continued to recover, with gross profit margins rising as raw material costs declined and product mix improved. The company is expected to recover fully from the melamine scandal. Its 2010-11-year sales will grow by 13% to 15%, as demand continues to recover, with growth accelerating in the 2009-11 fiscal year, with a compound annual growth rate of 24% to 25%. Morgan Stanley appreciates Mengniu's ability to perform better and its operating management is more stable, while referring to its 19 times-fold forecast-earnings ratio of 10 fiscal year, with low valuations.