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  "docSlug": "c47ae4d76596",
  "documentTitle": "China Huishan Dairy Holdings (6863 HK)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2016-12-16 00:00:00",
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  "notes": "The slide uses a table to contrast historical metrics (milkable cows, yield rate, and ASP) against the company's reported fair value claims.",
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      "text": "Although the yield rate and the raw milk price dropped significantly since FY2015, Huishan reported increasing fair value.",
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      "text": "Fair Value per Milkable Cow: 41,584",
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      "text": "The Company previously reported an organic growth rate of 10%. As the total herd size reported a first ever decline in 1H17, we conclude that a dramatically increased rate of culling (perhaps 2x the historical rate) should be a major factor reducing the herd's valuation.",
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      "text": "Management has consistently reported initiatives to reduce their feed costs to sustain margin on raw milk, which we question in section in this report. As the impact of the feed cost adjustments are reducing yields, the marginal impact on profit is negative, so the impact on the fair value is negative.",
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      "text": "Huishan shows the various components it uses for fair value calculation—lactation period, raw milk ASP, yield rate, culling rate—in its prospectus and annual reports. Although the yield rate and the raw milk price dropped significantly since FY2015, Huishan reported increasing fair value.",
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      "text": "112 Huishan Prospectus, p.247\n113 For example, Huishan FY16 Annual Report, pp. 163-165\n114 Huishan FY16 AR, p. 28",
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      "text": "Table 2: Fair Value per Milkable Cow",
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