Dongfang share price higher on record harvest

Dongfang Modern announced record production for 2018 as well as continued strong demand for the company's citrus and camellia products.

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Dongfang Modern Agriculture Holding Group Limited (ASX: DFM) share price is up 2.5% to $1.02 today. This comes after the company released a market update this morning, announcing a record harvest for 2018 as well as continued strong demand for the company's products.

Dongfang is a leading provider of citrus and camellia products in China, the world's largest agribusiness market. The company advertises its supply chain and logistics network to top Chinese cities, exposure to favourable government incentives and strong economies of scale.

The company touted an expected 20% larger camellia seed harvest on the previous year and 27% higher navel orange production. These numbers were boosted by yield improvements as well as the added production from newly-acquired navel orange and camellia plantations.

The company's tangerine and pomelo businesses were less impressive. Tangerine production is expected to be up 1.4% due to productivity and yield improvements, while pomelo production is anticipated to be down 2.1% because of less favourable weather conditions.

2018 prices for all of Dongfang's products are expected to be in line with 2017 prices. The company expects 2018 to be "another year of record revenue".

Dongfang Chairman, Hongwei Cai said, "The camellia and navel orange plantations acquired during the year have integrated well and application of modern husbandry techniques has enabled efficiencies and yield improvement. These acquisitions enable us to maintain market leadership and to achieve continued revenue and profit growth."

The company also stated that its venture into the Australian health supplements market is "progressing well". Dongfang's acquisition of Bio Health Pharmaceuticals for $18 million was announced in April last year. The relocation of Bio Health operations to a larger manufacturing plant is expected to be completed this year.

Closer to home, the Costa Group Holdings Ltd (ASX: CGC) share price has rebounded today, up 5.17% to $4.88, after last week's shock profit downgrade saw its shares plummet 40% in one day.

Motley Fool contributor Cale Kalinowski holds no positions in the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors started the week off in a good mood today.

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why Bellevue Gold, Bubs, Clarity Pharmaceuticals, and Regal Partners shares are rising today

These shares are starting the week on a positive note.

Read more »

Two people lazing in deck chairs on a beautiful sandy beach throw their hands up in the air.
Travel Shares

Guess which ASX All Ords travel stock just rocketed 17% on an earnings upgrade

Investors are piling into the ASX All Ords travel stock today. Here's what's happening.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 34% on strong earnings growth

Investors just sent this ASX All Ords stock surging 34%. Here’s what’s happening.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Gainers

Why Dimerix, Newmont, Regal Partners, and Titomic shares are storming higher

These shares are having a good finish to the week. Let's see why.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Fortescue, Lynas, PEXA, and Regis Healthcare shares are charging higher

These shares are having a strong session on Thursday. But why?

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Gainers

Why Capricorn Metals, Insignia, Perseus Mining, and Qoria shares are storming higher

These shares are having a strong session on Tuesday. But why?

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Amaero, AMP, Block, and South32 shares are racing higher today

These shares are starting the week on a positive note. But why?

Read more »