Shuanghui Development:A leading player in China

The Group is a leading meat processor in Chinawith a strong commitmentto product quality; itspackaged meat products had a 39.6% market share in the national supermarket channelin 2016 § The Group has a diversified product portfolio that includes fresh meat and packaged meat products; it also fine-tunesthe product portfolio to cater to new consumer tastes

    The Group has a long track record of managing its working capitalefficientlyandmaintaininga low leverage; its cost effectiveness improved in 2016

    We project the Group’s revenue to grow at 6.72%CAGR in 2016-19E;net profit (to shareholders of the Company) togrow at 13.24%CAGRin 2016-19E

    Initiatewith BUY; current TP represents 18.97x/16.44x 17E/18E P/E, or 6.27x/6.04x 17E/18E P/B