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Summary: Global Dairy Holdings Ltd. May 11
Standard & Poors, May 2011
Abstract
The rating on Global Dairy Holdings Ltd. (GDH) reflects our view of the company's smaller scale than its peers', the highly fragmented and competitive dairy market in China, and GDH's aggressive growth strategy to expand upstream into dairy-farm operations. GDH's good profitability and its dairy-farming location, which benefits from a favorable climate and vast fertile grasslands, temper these weaknesses. In addition, we believe that China's dairy market has strong growth potential. The Chinese milk powder market is highly fragmented and competitive, in our view. GDH has about 1.5% share of the market. The company benefits from sourcing milk locally, which provides it with a competitive cost advantage over peers that rely on imported raw milk powder. The advantage is reflected...
Companies mentioned in this report are: Global Dairy Holdings Ltd.
Action: Review
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
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