Agriculture
May 17, 2012
Strong year-on-year growth in its average selling price allowed MHP to post an EBITDA increase of 48% YoY to USD 84mn in 1Q12. Revenue was up by 21% YoY to USD 298mn in the period, and a 31% YoY rise in the company’s achieved poultry price easily outpaced a 10% increase in its unit production cost. With the company set to expand its poultry capacity by about 14% in 2013, we reiterate our BUY recommendation for the MHPC stock with a target price of USD 24.0, implying an upside of 98%.
