TINGYI (Cayman Islands) manufactures, distributes and sells instant noodles, rice crackers and other food and beverages in China.
Brokerage ABN Amro Hoare Govett Asia has just put a buy on the stock.
Tingyi remains attractive for fundamental reasons as the company's Master Kang product is the top-selling instant noodle brand in China with a market share of 25 per cent.
The launch of a new brand name - which targets the middle and low ends of the market - should strengthen its market position.
Tingyi has an extensive distribution network in the mainland, covering about 1,300 wholesalers and 2,000 retailers.
Strong brand-name recognition and distribution in China are allowing Tingyi to diversify into other food products such as biscuits and beverages which offer good long-term growth potential.