Agriculture
February 09, 2011
AvangardCo: Sunny Side Up - Avangard’s 2010 operational and fi nancial results surpassed our model’s expectations. Management recently announced FY10 net profi t of USD 171mn on revenue of USD 434mn. The company produced 4.4bn shell eggs (+22% YoY), and exported the equivalent of 1.0bn pcs of shell eggs. Avangard now expects to produce 6.0bn shell eggs in 2011, a 36.3% YoY increase, with dry egg product output unchanged at about 10,000 tonnes. We update our model to refl ect these fi gures and raise our target price for the AVGR stock to USD 28.3 per share, implying an upside of 34.8% to the current price.
