Data:2009-12-12 2:34
Category: Money Tips Date: 2007-01-24
We have given the Great Northern Wilderness "cautious recommendation" investment rating is based on the long-term bullish on the domestic grain prices is expected to land contract payments under the company's steady earnings growth prospects, at the same time, the company stock reform on the next five years, the proportion of annual cash dividend of not less than the year to achieve 50% of distributable profits of the promises to make the current stock price is expected under the company's dividend yield as high as 3.9%, thereby supporting the further upstream price.
China's urban-rural dual structure, and thus rural and urban income inequality and growth pattern of the income gap between urban and rural areas is too large. However, because of financial subsidies and tax relief for space capacity is limited, prices for government regulation of long-term benefits are an important component of agricultural policies, in fact, since 2004, the sharp rise in the number of domestic grain prices have been inspired and recognized the government. Thus, while the short-term volatility of domestic grain prices is difficult to speculate, but the long-term growth trend in earnings growers should be expected, which makes a profit models rely heavily on low-cost land grant revenue performance of the company subcontracted with a sustained and steady growth prospects.
Company Auxiliary owners to include rice and Malting Barley processing, fertilizer and methanol production and the use of rice straw pulp and paper products, corporate investment in secondary industry, small scale, and their processed products are mostly land reclamation within the system to digest, so despite the long-term growth prospects limited, but operational risk control, but also to provide a steady contribution to profits.
Since its listing in 2002 has been steady growth in earnings, special mode of operation allows the company earnings volatility risk is significantly smaller than normal agricultural production and processing enterprises, and because of the rigidity characteristics of food demand, the company has a strong performance against the macroeconomic cycle capacity. This leads us to the company using DCF model to be a reasonable price for the 07 year-end 8.08 yuan per share, compared with the current share price rise nearly 21% of the room.
