Global Hunter Securities Reiterates Buy Rating on Yuhe International (YUII)

Global Hunter Securities is out with a research report this afternoon, where it reiterates its Buy rating on Yuhe International YUII; it has a $16.00 price target on the stock. The GHS analysts cited the company's recent announcement of the acquisition of 10 new parent breeder farms, adding 950K parent breeder sets on top of its existing 2.2MM. The analysts view this $16MM cash and stock investment as a highly accretive use of cash, after which the company will be left with ~$30MM in net cash or roughly $1.50 per share. The added that, given the current valuation, with shares trading at 5x and 3x FY 2011 and 2012 respective earnings, excluding net cash, we view this as one of the most attractive US listed Chinese investment opportunities.”