Pac Andes - Pacific Andes Resources target raised to $0.50 by CIMB

Stock Name: Pac Andes
Company Name: PACIFIC ANDES RESOURCES DEVLTD
Research House: CIMB

CIMB raises Pacific Andes Resources Development (P11.SG) target to $0.50 from $0.36, maintains Outperform call.



CIMB says 4Q10 core net profit of HK$110 million ($18.6 million) (down 8% on-year) was below expectations, forming 14% of FY10 estimate, FY10 core net profit of HK$771 million (+8% on-year) made up 96% of FY10 estimate.

“The variance came from lower SCM selling prices, and lower-than-forecast trawling revenue and fishmeal sales volume.”



However, raises FY11-12 EPS estimates by 2%-3% on higher profit assumptions for China Fishery (B0Z.SG). SOTP target raised following higher target for CFG ($2.55 from $1.75).



“We continue to expect catalysts from announcements of earnings-accretive expansion/acquisitions at CFG.” Shares flat at $0.335.