Bright Food Targets Israel's Tnuva
Bright Food Group, one of China's biggest of food companies, said it is in talks with Tnuva, the biggest food company in Israel, for an acquisition deal. Bright Food has approached British private equity fund Apax Partners to purchase 56% of Tnuva in a deal valued at 10 billion yuan, Israeli media reported. Bright Food's spokesman Pan Jianjun said the talks with Tnuva had just begun and they were getting to know each other. Shanghai-based Bright Food, parent of Bright Dairy & Food Co (SHA: 600597) and Shanghai Jinfeng Wine Co (SHA: 600616), has been active in international acquisitions during the past 3 years, including a majority stake in New Zealand's Synlait Milk, a 75% stake in Australia's Manassen, a 60% stake in Britain's Weetabix Food and a 70% stake in French wine exporter Diva. The company expects revenue from international business to make up 25% of its total revenue in 3 years, up from 15% at present.
Shanghai Electric 1H Earnings Dip 24%
Shanghai Electric Group Co Ltd (SHA: 601727, HKG: 2727), China's largest manufacturer and distributor of electric power and industrial equipment, said its 1H net profit fell 24% year on year to 1.41 billion yuan due to lower revenue and gross margin. Revenue was down 34% year on year and gross margin down 4% as a result of tougher competition and weak demand in the wind turbine market. 20% less revenue from coal fired units was also blamed for the profit decrease. The company will have to deliver a 73% year on year earnings growth for 2H 2013 to meet its full-year earnings target of 2.88 billion yuan, which JPMorgan thinks is very challenging.
Yili 1H Earnings Jump 125%
Yili Industrial Group Co (SHA: 600887), a leading dairy maker in China, posted 24 billion yuan in revenues and 1.75 billion yuan in net profits for 1H 2013, up 13.4% and 125.1% respectively from a year earlier. Liquid milk sales were up 17.9% year on year, buoyed by organic milk; and revenue from milk powder rose to nearly 3 billion yuan.
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