On 23 July 2021, the sell-side research arm of KGI Securities (Singapore) Pte 
Ltd initiated coverage on Don Agro International Limited ("Don Agro") and its 
subsidiaries (collectively the "Group"), one of the largest agricultural 
companies based in the Rostov region of Russia, with an Outperform 
recommendation and a DCF-backed 12-month target price of S$0.64. Read the full 
report at: http://donagroint.com/analyst-reports/.

Investment Thesis:

-Market Leadership in the Rostov Region, Russia. Don Agro has been operating as 
a single entity for more than 10 years, a result of the privatisation of five 
collective farms. The group's good financial track record can be attributed to 
the experienced gained and the structured and hands-on farm management 
practices, which continue to be overseen by a senior management team who has 
been with the group since 2012. 
-Acquisition-led growth, supported by a healthy balance sheet. KGI expects 
growth to be primarily driven by acquisitions. With the purchase of Volgo-Agro 
LLC in 4Q2020, Don Agro added around 10,040 hectares to its land bank, 
increasing it by 19% to 63,240 hectares as at end-2020. The group is in a 
robust financial position to embark on more acquisition-led growth and to 
invest in new machinery, thereby increasing production yield. The Group has 
generated positive free cash flows since 2018 and was in a net cash position of 
S$7 million as at end-2020. 
-Meeting the demand of a growing world. Don Agro's key products (wheat, 
sunflower, corn, and raw milk) are witnessing global demand growth. The 
OECD-FAO forecasts that the expanding global population remains the key growth 
factor for agricultural demand.

About Don Agro International Limited

Don Agro, together with its subsidiaries, is one of the largest agricultural 
companies in the Rostov region in Russia principally engaged in the cultivation 
of agricultural crops and production of raw milk. The Group has a total 
controlled land bank of 67,340 hectares, of which 54,420 hectares are arable 
land. The Group owns approximately 17,200 hectares of its controlled land bank. 
In addition, the Group is one of the top farms in terms of milk production in 
the Rostov region, and owns more than 4,000 heads of dairy cattle including 
approximately 2,200 milking cows. [http://donagroint.com/]

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SOURCE:  Don Agro International Limited