Agriculture (OVERWEIGHT)
China Farm Equipment : S$0.57 BUY (TP: S$0.88)
China XLX Fertiliser: S$0.97 BUY (TP: S$1.17)
Food a priority
Food prices have escalated throughout the world. The increased production of biofuels is a major contributing factor. The US alone used about 30 million tons of corn to produce biofuel in 2007. We expect increased food production globally, and hence have an OVERWEIGHT call on China’s Agriculture Sector, namely China Farm Equipment and China XLX Fertiliser.
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