The slaughterhouse and enzyme factory will not add much revenue in 2013. We have seen some delays, and I would not be surprised if they delayed this spin-off one year so that it can mature a bit more.
$30M in revenue for 2013 is actually optimistic. Even if you use 10,000 head sold, the margins will be very thin if you fatten them for only 3 months. You also can't justify a P/E of 10 if there is only limited growth left.
But I absolutely remember the figures 26,000 RMB per head and 46,000 RMB per head sold to the restaurants.
46,000 RMB for aromatic beef from the Cattle Farms sounds plausible. That's $20/kg meat.
And the 26,000 RMB probably applies to SJAP. If they sell the meat, which they are not. At least not in 2013. And you can't expect people to pay a P/E of 10 for future revenue.
So, I would like to see them spin off FF1 as quickly as possible. But nobody listens to me.
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