Why UBS, Pinpoint, Fidelity and 24 other funds visited this Chinese pickled vegetable maker

Name: Chinese start-up launches plant-based meat as coronavirus fuels healthy eating trend
Uploaded: 2021-11-21T23:30:21.000Z
Duration: 3 min 9 s
Description: Chinese start-up launches plant-based meat as coronavirus fuels healthy eating trend

Stock has returned 27 per cent from its lowest point this year in August and analysts see a 24 per cent upside from here over the next 12 months

Company hosted analyst visits from UBS Asset Management, Pinpoint Asset Management, Fidelity and 24 other investors recently

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Traditional Chinese pickled vegetables in packets produced by Fuling Zhacai. Photo: Weibo

Zhang Shidongin Shanghai

Published: 7:30am, 22 Nov 2021

What’s going on at Chongqing Fuling Zhacai Group? The maker of traditional pickled vegetables, typically served during breakfast, appears to be on the radar of curious stock analysts and money managers.

The company, located 1,670km west of Shanghai, has logged 27 visits from foreign institutional investors for research over the past two weeks, including UBS Asset Management, Pinpoint Asset Management and Fidelity International.

That is the most recorded by any of the 2,500-odd firms listed in Shenzhen, according to the Securities Times based on stock exchange data. Vaccine maker Chongqing Zhifei Biological Products and machinery supplier Dongguan Yiheda Automation attracted 24 and 17 visits respectively.

The stock has returned 27 per cent to 32.29 yuan from its lowest level this year on August 31, outpacing the 2.5 per cent gain in the exchange’s Composite Index. Its decision to raise prices for the first time in three years amid a cost squeeze may be one reason for the bullish market consensus.

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Chinese start-up launches plant-based meat as coronavirus fuels healthy eating trend

“Fuling Zhacai has pretty strong pricing power, given its solid position within its industry and the lead over rivals in market share,” said Fu Rong, an analyst at Guosheng Securities, who has a buy recommendation on the stock. “That will fortify its earnings next year.”

Overseas investors bought 2.68 million of its shares in the third quarter through the Stock Connect trading link with Hong Kong, according to stock exchange data, boosting their combined stake to 4.3 per cent.

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