Howard Yeager's questions to Origin Agritech (SEED) leadership • Q2 2022
Question
Howard Yeager from Newbridge Securities asked for comments on new developments or contracts expected in the near future, potential for insider buying, the disconnect between the rising price of corn and the company's stock performance, and prospects for securing research coverage from banks.
Answer
Director of IR Joe Ramelli noted personal and family stock purchases to show conviction and confirmed the company is actively speaking with banks about initiating research coverage. Chairman and CEO Gengchen Han detailed the strategy for nutrition-enhanced corn (NEC), highlighting a 50,000 'mu' contract and a focus on producing corn through JVs rather than selling seeds, which offers significantly higher revenue potential. Ramelli added that the company believes its stock is dramatically undervalued given its capital-light JV model with BaoDao and the massive market opportunity with zero competition.