DMG has started Sino Grandness Food Industry (JS5.SG) at Buy with $0.40 target price, based on 5x forward P/E, says Dow Jones.

Sino Grandness says business prospects remain strong for China’s top exporter of canned asparagus, long beans; trades at attractive 3.6x FY10 P/E, 6% dividend yield. Notes exports average +20% yearly over 2007-2009, driven by increased demand from supermarkets, discount chains in Europe.

Expects higher production capacity, new product offerings, entry into new markets to sustain exports growth.

Says recent venture into China’s consumer market making headway with domestic sales making up 18% of FY09 revenue.

Tips 20% earnings CAGR over next three years. Shares +1.8% at $0.285.