Independent Insight Provider

KL Lo

Equity Bottom-Up

<p>Fufeng is a leading Chinese manufacturer of corn-base biochemical products (e.g. MSG). MSG is widely used in the restaurant and catering industry. It is a small-mid cap name&nbsp;but with decent trading vol (Market cap at USD1.2bn and daily turnover of USD3m). I started looking at Fufeng as I believe it will benefit from falling corn price amid strong USD. After talking to company, I found it is not just a cyclical rebound but also an attractive re-rating story.</p>

Fufeng is a leading Chinese manufacturer of corn-base biochemical products (e.g. MSG). MSG is widely used in the restaurant and catering industry. It is a small-mid cap name&nbsp;but with decent trading vol (Market cap at USD1.2bn and daily turnover of USD3m). I started looking at Fufeng as I believe it will benefit from falling corn price amid strong USD. After talking to company, I found it is not just a cyclical rebound but also an attractive re-rating story.

Structural uptrend after years of consolidation