Rain-run food upside down UBS continued to comment buy 14.38 yuan

Rain-run food this morning affected by the weak big city after a significant low opened to accept buying support, share price shocks rebounded half a half-day more slightly down 0.49% to 12.32 Hong Kong dollars, 1.91 million shares.　　UBS issued a report saying it maintained the buying rating of the unit, raising the target price from HK $13.35 to HK $14.38, a 17% premium over the market. UBS refers to the assumption of the weighted average capital cost reduced from 11.6% to 10.9%, the corresponding reduction of yurun food earnings per share forecast.　　But the gross profit margin of dry-run food is expected to increase by 1.2% in the first half of 09, and the gross profit rate of low-temperature meat products will rise by 1.7%. Pork prices are expected to rise in the second half of 09, according to UBS, as pig stocks are falling. Yurun has enough capacity to meet supply and demand growth, which can offset the negative impact of declining earnings per ton in the upstream business.