Man Shing Agricultural Plans Expansion

Posted by admin in OTCBB on December 14th, 2009 | no responses
Man Shing Agricultural Plans Expansion
HONG KONG: Man Shing Agricultural (MSAH.OB) plans to expand their total plantation area by 45% during the first half of 2010. The company, a leading ginger producer in China, plans to lease an additional 2,500 acres of prime agricultural land in Shandong Province, China. The expansion will result in Man Shing’s total land area for ginger production increasing from the present 5,500 acres to a total of 8,000 acres, equal to a 45% increase and making Man Shing the largest ginger producer in China.
In addition to adding scale economies for planting, harvesting, storage and packaging operations, Man Shing expects revenues to increase by expansion of plantation. Net profits and net profit margin are expected to have higher proportionate increases due to economies of scale.
These figures could be substantially higher given the forecasts on the price of ginger over the next 12-18 months. Experts expect the price of ginger to rise by a further 30% to 50% by the end of 2010.
With Man Shing currently yielding around 5 tons of ginger per acre, the upcoming expansion, scheduled for the first half of 2010, will make Man Shing one of the largest high-quality ginger in the world.

Man Shing Agricultural Plans Expansion

HONG KONG, December 15th 2009: Man Shing Agricultural (MSAH.OB) plans to expand their total plantation area by 45% during the first half of 2010. The company, a leading ginger producer in China, plans to lease an additional 2,500 acres of prime agricultural land in Shandong Province, China. The expansion will result in Man Shing’s total land area for ginger production increasing from the present 5,500 acres to a total of 8,000 acres, equal to a 45% increase and making Man Shing the largest ginger producer in China.

In addition to adding scale economies for planting, harvesting, storage and packaging operations, Man Shing expects revenues to increase by expansion of plantation. Net profits and net profit margin are expected to have higher proportionate increases due to economies of scale.

These figures could be substantially higher given the forecasts on the price of ginger over the next 12-18 months. Experts expect the price of ginger to rise by a further 30% to 50% by the end of 2010.

With Man Shing currently yielding around 5 tons of ginger per acre, the upcoming expansion, scheduled for the first half of 2010, will make Man Shing one of the largest high-quality ginger in the world.



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