COFCO Meat IPO Review - As Good as Betting on Hog Futures

Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

Equity Bottom-Up

Wens Foodstuff Group Co., Ltd. / Equity Bottom-Up

Wens Foodstuff Group Co., Ltd. (300498 CH)

<p class="ember-tether-target ember-tether-enabled ember-tether-element-attached-top ember-tether-element-attached-left ember-tether-target-attached-top ember-tether-target-attached-right">We expect pork prices in China to surge &gt; 10% YoY  in parts of 2017 due to low inventory levels in China and expected low global surplus. As China starts the winter season and enters into the Chinese New Year season, consumption of meat in China tends to increase. Meanwhile, the smog situation across the country is already pushing up some domestic food prices. Domestic hog prices are 17% off the peak, seen in June 2016.</p>

We expect pork prices in China to surge &gt; 10% YoY  in parts of 2017 due to low inventory levels in China and expected low global surplus. As China starts the winter season and enters into the Chinese New Year season, consumption of meat in China tends to increase. Meanwhile, the smog situation across the country is already pushing up some domestic food prices. Domestic hog prices are 17% off the peak, seen in June 2016.

Henan Shuanghui Investment & Development (000895 CH)

Wens Foodstuff Group Co., Ltd.

Winter Is Coming, Bet on China Pork