Shanghai-listed Xinjiang Guannong [SHSE:600251] is a very solid-looking agricultural stock, firmly embedded in the business of processing and selling agricultural products in China. It specialises in cotton, tomatoes, sugar, fruit and vegetables. It was founded in 1999 and has its headquarters at Korla.
Korla is the second largest city in China's Central Asian Xinjiang province, and this is where some of the recent headwinds the company is facing might originate.
Tomatoes are big business for Xinjiang Guannong, which controls a big slice of the tomato paste market in Asia. But it also remains dogged by political controversy, which could hamper growth over the longer term.
Xinjiang Guannong has been putting out some very solid numbers for investors, although caveat emptor there have been some irregularities, of which more later.
According to the last report to shareholders, Xinjiang Guannong has CNY 5.81bn in total assets and liabilities of CNY 1.93bn. The company comes in highly rated on our AI-driven Asia Pacific stock screens, and knocks it out of the park when benchmarked against both the China agri sector in general and indeed close peers like Gansu Yasheng Industrial and Guilin Layn Natural Ingredients.
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