Sino Grandness Food Industry (JS5.SG) off early highs, now flat at $0.420 after Shenzhen-based manufacturer, distributor of bottled juices, canned fruits, vegetables late yesterday says 3Q net profit +53.6% on year to RMB38.7 million ($7.5 million), revenue +49.9% on year at RMB191.9 million, primarily driven by rising orders for new beverage products.

DMG, which has Buy rating, raises target to $0.56 from $0.46, says results continue to impress with strong domestic beverage contribution, lower selling, distribution expenses.

Notes 9-month revenue, net profit made up 68%, 79% of previous FY10 estimates; raises EPS view by 13%, 6% for FY10, FY11.

Notes $6.7 million proceeds from October share placement should help to alleviate tight balance sheet, fund growth, capex.

DMG's new target represents around 33% upside potential; $0.430 intraday high likely to cap near-term.