Company Name: CHINA FISHERY GROUP LIMITED
| Research House: DMG | Price Call: BUY | Target Price: 1.77 |
DMG & Partners Research has upgraded China Fishery (CNFG.SI), a Singapore-listed industrial fishing company, to buy from neutral but maintained its target price of $1.77.
DMG said China Fishery's share price has fallen around 13% since mid-May and the sell-down is unwarranted given the company's sound fundamentals.
Traders attribute the fall in share price to concerns that the Japan earthquake will affect its business.
DMG said it remains optimistic on China Fishery's earnings for the second half of the fiscal year ending September as the delay of fish roe to Japan due to the earthquake may result in higher selling prices for the coming quarter.
The brokerage added that the fishing season in Peru had begun in April and the performance for China Fishery's South Pacific and Mauritania operations is expected to be in line with or better than that for the first half.
At 9:33 a.m., China Fishery shares were down 0.7% at $1.54 on a volume of 17,000 shares.
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