20150612-JEFFERIES-中国圣牧（1432）：THE_PEARL_IN_DESERT；INITIATE_WITH_BUY-551564

We expect demand for organic food to see rapid growth.Shengmu is the first large-scale organic milk producer in China with a vertically integrated value chain.Its farms’unique location in desert and experienced team offer entry barriers，and it enjoys high growth and margins.We initiate at Buy with at PT of HKD3.2.