At an extraordinary meeting of shareholders of Ningbo Tech-bank Co., Ltd., a proposal related to the acquisition of an 80% stake in Chengdu Jinghua Biological Product Co., Ltd. was examined and approved. Subsequently, the company canceled a planned project at Nanjing Tech-Bank Bio-Industry Co., Ltd. Chengdu Jinghua owns the rights to more than 30 different vaccines that have been approved by the Ministry of Agriculture. Annual production capacity for animal vaccines is 15 bln units.

By stepping into the oil and vaccine industries, the company can create a supply chain which will boost its existing feed business. Analysts estimate its net profit will be RMB 128.74 mln in 2008, RMB 77.86 mln in 2009 and RMB 105.44 mln in 2010. EPS is estimated at RMB 0.93 in 2008, RMB 0.57 in 2009 and RMB 0.77 in 2010. After deducting the cost of land, EPS in 2008 is estimated at RMB 0.34. Its P/E ratio is estimated to be 41 in 2008, 25 in 2009 and 18 in 2010. Analysts have a assigned a 'Buy' rating to the company as a result of its strong profitability and the growth potential of its annual production capacity.


Source: http://www.gf.com.cn

Date: 29 Jul 2008

CN01/BG /SW/BT/MM