The stock market aspect: Big into food profit has guaranteed bullish

Weijun Intel's Better-than-expected performance and strong financial results, not only boosted its share price by 7% per cent, but also spurred the stock market to rally 256 points late in the day, while the representative of technology stocks rose by 3.5%. The strong rebound in peripheral stocks has positive support for Hong Kong equities, which have gained about 1000 points in Lianhe two days, however, it may be that the short-term rally is too drastic, the Hang Seng index on the rise to 18,700 level has a significant selling pressure, the afternoon by the spot month to narrow the impact of the rise, the increase in the city also slowed markedly, closing 18, 　　361.87, 103.21 or 0.57%, the motherboard to increase the transaction to more than 70.854 billion yuan. Spot month refers to the closing of 18,340, 85 points, fried low water 21 points, and the higher bit of 18,760, down 420 points, on the performance does not dare to compliment. However, it is worth noting that the Hang Seng index climbed to 18,883 levels in the end of June and then turned back, and in the past 3rd, more than 1000 points of the rise of the market, but also because of the premature rally, approaching this psychological close before triggering a larger profit plate gush, is also very natural. 　　But now that Hong Kong stocks have changed, and for investors who have not been able to memorial on the bus recently, they are offering a good opportunity to deploy the collection if they encounter a major market pullback. The situation of hot money inflows into Hong Kong for KFC's mainland contracts has not changed, and it is expected that the market is still expected to warm up, so the two or three-line shares which are supported by real factors can be added to the attention, and the large-form food (3999) is one of the more promising. According to foreign quoted Da-cheng Food chairman Han Jia said that the recent joint with the mainland two suppliers, with the United States chain Restaurant group Yum Brands's KFC, signed the next 3 years of the mainland chicken supply agreement, worth about 1.7 billion yuan, will supply KFC about 280,000 tons of chicken. The report also pointed out that the strategic Alliance Agreement signed by Saint-Non, Fujian and Xinchang in Beijing, the total value of the whole contract was at least 5 billion yuan and three suppliers accounted for One-third. 　　It is reported that Dacheng, Fujian Saint-Non and Shandong Xinchang accounted for KFC currently in mainland chicken supply about half of the share. After the swine flu outbreak, the public is wary of pork, but it is good for the sale of its chicken products, the group has indicated that it will not reduce sales this year, will only improve food safety standards to attract customers, so the group's gross margin is expected to improve the scope. Based on the "big orders" from KFC, the performance has been assured, and at yesterday's closing price of 1.68 yuan, this 09 forecast p/E ratio is only about 7 times times, as a leading industry enterprises, this valuation is not expensive. If the stock price can break through the resistance level of 1.82 yuan in a short period, the next target will move up to 2.5 yuan of the annual high.