BALTIMORE, MD / ACCESSWIRE / May 6, 2020 / Goldman Small Cap Research, a stock market research firm specializing in the small cap and microcap sectors, announced today that it has released a new research update on China Xiangtai Food Co., Ltd., (NASDAQ:PLIN). The Company is a leading pork products and pork processing company in China. This report carries a price target. To view the new research update, along with disclosures and disclaimers, or to download it and the original full report in their entirety, please visit https://bit.ly/3frGSXt.
In the Opportunity Research update, analyst Rob Goldman discusses the potential major financial impact of the Company's recent acquisition and joint venture on the Company, along with drivers of the Company's business model, and financial forecasts.
Goldman noted, "Since our initial report in late May, PLIN has not only executed a highly profitable and accretive complementary business acquisition, but closed on a major joint venture which provides the Company with unrivalled positioning through vertical integration. The Company PLIN acquired a 51% controlling interest in Chongqing Ji Mao Cang Feed Co., Ltd.("JMC"), a private enterprise specializing in feed raw material sales and providing feed formula solutions. The deal enables PLIN to expand the southwest market in China but also adds roughly $70 million, or a 70% in annualized sales."
"Meanwhile, the recently announced 10-year joint venture with Chongqing Fengjie County Rural Ecological Agriculture Development Co., Ltd. ("FEA") increases PLIN's vertical integration by immediately adding hog breeding capabilities," commented Goldman. "Pork is a major food staple in China and PLIN is a leading provider throughout the food chain."
"Given the recent events, we have raised our forecasts and our price target is under review for a potential upgrade as well. Plus, it appears additional business development opportunities are in the offing later this year, enabling PLIN to establish a stronghold in this sector. Publicly traded pork companies such as Hormel are near year highs as this category serves as a popular defensive group during these difficult economic and market conditions. As a US-traded pure play on this sector in China, PLIN could follow a similar path," concluded Goldman.
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For more information on PLIN, Surge Holdings, please visit: www.ir.plinfood.com.
Goldman Small Cap Research
Rob Goldman, Analyst
410-609-7100
[email protected]
SOURCE: Goldman Small Cap Research