ICBC International published a research report. The Asian fruit industry published a profit surprise. Unaudited profit for the first half of 2011 is expected to increase by more than 100% year-on-year. After discussions with management, we learned that the company's operating profit for the first half of 2011 (not counting the increase in fair value) should also increase by more than 100% year-on-year. The impetus is believed to come from a sharp increase in orange production and average price increases in winter, rising gross margins, and economies of scale leading to positive operating leverage ratios.

According to ICBC International, it maintains the “buy” rating for the Asian fruit industry, with a target price of 11.6 yuan, with room for a 24% increase from the current price. The bank expects that the increase in the fair value of biological assets will increase significantly compared to the same period last year. Due to improved orange quality and better tree age, the fair value will increase. Yingxi supports Group's optimism about the company's long-term prospects and the view that there is room for growth in the next 1 or 2 years for the market to reevaluate.

The Asian fruit industry closed at HK$9.39 yesterday.