报告名称：Xinyangfeng Fertilizer(000902)Update & Tracking Report：Directions of the agr
报告类型：点评报告
报告日期：2016-03-17
研究机构：中信国际
股票名称：新洋丰
股票代码：000902
页数：4
简介：Event:
On Mar 15, Xinyangfeng, announced the acquisition of a 51% stake in aleading domestic modern agricultural technology company forRmb510mn. Leveraging on its proprietary R&D across biotechnologyand controlled-environment agriculture (CEA), the target is anintegrated services provider that effectively combines informatizationwith automation and IoT, to continually develop integrated solutions foragricultural automation control systems and IoT, CEA projects, etc.Investment highlight:
A further step towards evolving into a global integrated modernagro-services provider with its latest acquisition. As Chinaˇs leadingproducer of compound fertilizers, Xinyangfeng is actively looking totransform into a global integrated modern agro-services provider. TheCompany has accelerated its expansion in recent years with a series ofinitiatives including setting up a subsidiary based in Australia in Aug2015, which acts as the launch pad for its foray into the global market.Meanwhile, it also set up an investment arm in Feb 2016, which theCompany hopes, will accelerate its expansion into the broad-agriculturefield and help to push forward with industry chain integration. As such,its latest acquisition is a continuation of Xinyangfengˇs businessstrategy and represents a further step towards evolving into a globalintegrated modern agro-services provider.
Generating synergy and venturing into emerging markets byexpanding into agro-services. Over the past decade, the driverbehind the sales of agricultural inputs has switched from products todistribution channels. At the same time, focus on the competition isshifting towards services. Over the next ten years, companies boastingmore premium agro-services resources will become the ultimatewinners in the next round of competition. Meanwhile, given thetransformation in plantation methods, demand for agro-services isstarting to spike, paving the way for producers of agricultural inputs toswiftly cut into the new markets which have massive potential, throughindustry chain extension.
Massive agro-services market as a result of industrytransformation. We believe five major directions are developing thanksto transformation in plantation methods:
1) Technical services based on agricultural means of production;
2) Various types of machinery-based plantation services;
3) Rapidly growing agricultural financial services following theincrease in the quantity and scale of industry participants;
4) Strategic reserve / storage / sales service that promotes theintegration of the primary, secondary and tertiary industries;

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