Jinghua Shanyi maintained the Asian Fruit Industry (0073.HK) buying rating, but after the company announced its results, it is reviewing the target price of the stock (previous target price of HK$12.80).

The company's mid-term net profit increased 111.5% year-on-year to RMB 5233.5 million, accounting for 66.7% of the net profit expected by seven analysts surveyed by Thomson Reuters for fiscal year 2011. Jinghua Shanyi said that the mid-term revenue of the Asian fruit industry increased by 56.7% to RMB 624 million, as sales of fresh oranges increased by 36.6% to RMB 526 million.

Jinghua Shanyi added that the fair value of biological assets in the Asian fruit industry increased 105.6% year-on-year to RMB 338 million. Jinghua Shanyi said that they think this is mainly because the Xinfeng Plantation and the Hunan Plantation continue to grow fruit trees, and the average price of fresh oranges is rising.

The Asian fruit industry rose 3.04% last Friday to close at HK$8.80.