DJ MARKET TALK: ABN Amro Starts China Milk At Buy; S$1.10 Target

STOCK CALL: ABN Amro initiates China Milk (G86.SG) at Buy, sets S$1.10 target price. Broker says raw milk, bull semen producer is good play on rising food prices in Asia with rising disposable incomes in China driving demand for dairy products. "China Milk is an excellent play on the Chinese food theme: it is the largest company in China in the bull semen, cow embryo and raw milk businesses, in terms of market share." Adds valuation undemanding, stock trading at steep discount to Asian agricultural peers. Share currently up 6.2% in active trade at 2-week high of S$0.775.