Stock Name: China Fish
Company Name: CHINA FISHERY GROUP LIMITED
Research House: UOB KayHian
UOB Kay Hian Research in an April 27 research report says: "CFG began its fishing operations in the North Pacific, holding a 5% market share in 2005. It has since morphed into one of the largest and most profitable fisheries in the world, with operations in the North Pacific, South Pacific and Peru. It is also more profitable than its peers, enjoying a gross margin of 37.0% vs a peer average of 30.6%.
"We expect revenue from the South Pacific to contribute 10.9% to FY2011 revenue and 15.1% to FY2012 revenue, up from 2.9% in FY2010. Target price of S$2.48 based on a FY12F PE of 11.0x, offering an upside of 40.1%. It is currently trading at 7.7x FY12F PE, a 22% discount to its ex-China peers, despite better growth prospects and higher profitability.
"CFG has delivered a strong earnings CAGR of 24.9% over the past four years and we believe it will continue to benefit from resilient fish consumption and rising prices. BUY (initiating coverage)."
Company Name: CHINA FISHERY GROUP LIMITED
Research House: UOB KayHian
UOB Kay Hian Research in an April 27 research report says: "CFG began its fishing operations in the North Pacific, holding a 5% market share in 2005. It has since morphed into one of the largest and most profitable fisheries in the world, with operations in the North Pacific, South Pacific and Peru. It is also more profitable than its peers, enjoying a gross margin of 37.0% vs a peer average of 30.6%.
"We expect revenue from the South Pacific to contribute 10.9% to FY2011 revenue and 15.1% to FY2012 revenue, up from 2.9% in FY2010. Target price of S$2.48 based on a FY12F PE of 11.0x, offering an upside of 40.1%. It is currently trading at 7.7x FY12F PE, a 22% discount to its ex-China peers, despite better growth prospects and higher profitability.
"CFG has delivered a strong earnings CAGR of 24.9% over the past four years and we believe it will continue to benefit from resilient fish consumption and rising prices. BUY (initiating coverage)."
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