News: China-based packaged food manufacturer Tingyi (Cayman Islands) Holding has posted a 24% year-on-year (y-o-y) increase in its profits to US$284.4mn in H112 (ended June), up from US$229mn in H111. The rise has been attributed to the growth in Tingyi's instant noodle business, which rose on the back of lower palm oil prices. The firm's instant noodle business, Tingyi's second-largest business by revenue, rose 15.8% y-o-y to US$1.87bn in H112. Tingyi's sales increased 9.5% y-o-y to US$4.53bn, primarily due to the rise in its instant noodle arm.
BMI View: Over our five-year forecast period, we are bullish on the growth prospects of the Chinese food sector. Supported by an ongoing spread of mass grocery retail and increasing incomes, we are forecasting a compound annual growth rate of 11.1% year-on-year in headline food consumption between 2012 and 2016, at which point we expect it to reach CNY6.8trn (US$1.1trn).