Sino Grandness Food (JS5.SG) is +3.8% at a month-high of $0.41, extending its 6.8% rise since the beginning of December. Investors appear unfazed by the impact of China’s rising food prices on the canned fruits and vegetables producer, on the view the company’s ongoing expansion of its distribution network and product range will pay off. 

Phillip Securities analyst Lee Kok Joo says as most of Sino Grandness’ products are sold to overseas markets, they won’t be affected by China’s price caps; adds, raw material costs have been largely stable as the company buys in bulk directly from farmers and not from the secondary market. Kim Eng Securities says valuations are “compelling,” with the stock trading at consensus 4.6X FY10, 4.2X FY11 P/Es. 

 

Immediate resistance is at the $0.445 November high.