Build seed industry leading strategic clear.

In 2007 the company of the first largest shareholder is the world's first new group MBT Kisumu2,introducing new four seed industry company, VHK as strategic investors VHK thus becomes a long flat indirect tech shareholder. VHK global corn seeds market share in the fourth, vegetable seed share the second. 2010 January company with 3600 yuan made shanxi TunYu subsidiary of Beijing TunYu 60% stake announcement, the company wanted from TunYu directly or indirectly by Beijing's controlling shareholder TunYu become shanxi and sprinting towards the corn market. In April 2010 with shanxi Lima company and signed "grantham rehob 16" varieties franchise agreements, meanwhile LiuShi announced before joining pioneer China chief executive RON flat high-tech. We think this a series of movements are showing the company wanted to build seed industry bibcock strategy is very clear, the company will continue to be the first strategic business hybrid rice, corn promoted to the second strategic business, maintain dry chili seed advantage position.
Rice business continues to carry out "eighty-twenty rule".
The company now has many kinds, hybrid rice by high-end products contributed most Maori,mbt shoes uk so the company has been in the adjustment of product structure. From 2007, the company began the gross profit margin of rice business rise gradually is company adjustment of product structure performance. We think the future will continue to make the adjustment of product mix, key popularized varieties also will fall in gross margin higher good varieties, and further improve the company on the comprehensive c.m rice business. At present the company hybrid rice variety is the dominant three-line double season late "gold optimal 207" regeneration. Because of this variety extension period for 10 years, and now the sowing area in market share has reached 10%, so we think this variety has reached promotion at maturity, the future of this variety extension dramatically increase is unlikely. We think the 2008 through the countries of two judges Y yunjingyou 1 will become kilograms these two years of promotion key varieties. 2009 company Y two yunjingyou 1 of 1 million kg seed quantity, because this breed is 2-2.5kg can achieve 650 kilograms field/acre, more general higher about 150 kilos per varieties, so this product for a listing appeared in short supply. We expect this year Y two yunjingyou 1 seed would reach the quantity of 4.5 million kilograms.
Corn varieties will become the new profit growth point.
At the end of April 2010, the company signed a grant of shanxi Lima with buying "rehob 16" business agreement, obtain the variety and retailing. We assume that future "rehob 16" market share to 10%, then can reach 500 million acres, need to kind of quantity for 10 million kilograms. The lowest price in accordance with the contract, 25 yuan/kg calculation for a company to bring 1.25 billion yuan MBT Salama,of revenue. We think "rehob 16" will not only is the beginning of LiuShi sir value marketing, will also be long peace shanxi Lima, if the beginning of grantham cooperation "rehob 16" promotion could obtain satisfactory success, the future is possible to obtain high Lima, grant the other corn seed and retailing.
Profit forecast:
We expect the company 2010 and 2011 and 2012 respectively the revenue 14.17 billion yuan, 17.10 billion and $20.74 billion yuan, belonging to the parent company net for 0.72 billion yuan respectively, 0.99 billion and $1.41 billion yuan, and the corresponding diluted EPS respectively after 0.26 yuan, 0.36 yuanhe 0.51 yuan, first give the company "immediately" rating. (XiangCai securities YuQingQing)