DFM -> The cheapest stock on the ASX -> BUY!

Half year results today -> super positive - check this.

* Record Harvest Ahead at higher fruit prices = higher profit. Last years profit was $90m AUD. They have just acquired 1400 new hectares to harvest - taking the total to 9800. that's an 16% increase - if we put this back into basic profit numbers that will take us to over $100m in net profit.

Market cap is $384m.
Dividend policy is 25% payout ratio. so we are looking at most likely a minimum of $25m dividend on $380m market cap.. = 6.5% yield.

$75m stays in the company to further grow the company. that is IMPRESSIVE. It has a 2% market share = lots of room to go further.

* Company says profit margins to be maintained.
* Company says fruit prices will be increased
* Chairman didn't take his dividend cash out of the company, instead, gave it back as an interest free loan. No dilution to shareholders, no costs. Just heres an extra $10m.

We can and should be worried about Chinese companies with bad corporate governance. But from what I can see, this is a very solid company which has a basic business model - grow fruit, and sell it. Theres hardly a catch to it.

I think we are in the early stages of a transformation - the company will continue to grow, perhaps get some business opportunities in Australia, and it is also looking at downstream processing options. (so not only grow the fruit, but also sell the higher margin products).

Its basically trading at book value. It could pay a 25% dividend if it wanted. It has a PE of less than 5. It has NO DEBT. no short interest. There is a lot to be excited about.

My valuation shows this should be atleast at 1.50, and with full year results perhaps it can head back to $2.

Goodluck, don't miss this one for your long-term holdings.

Best, PB.