DBS Vickers starts China Minzhong Food (K2N.SG) at Buy with $1.58 target price, implying 11.0x FY11 P/E, 8.3x FY12 P/E, according to Dow Jones.

DBS Vickers says vegetables processor well placed to gain from China’s growing importance as 1 of world’s key vegetables exporters; “the company will also benefit from the consolidation of the fragmented vegetables farming industry in China.”

Broker notes Minzhong’s cultivation bases, processing facilities well diversified across China, with customer base spanning 26 countries worldwide. Says having Government of Singapore Investment Corp. as second largest shareholder, with 17.5% stake, positive for corporate governance. Shares off 1.5% at $1.35.