Stock Name: China Fish
Company Name: CHINA FISHERY GROUP LIMITED
DMG & Partners Research in a Nov 9 research report says: "China Fishery (CFG) announced that they have acquired two Peruvian fishing companies for a total of US$26 million.
"Its share of North Peru TAC will increase by 0.16ppt to 6.21% and share of South Peru's by 0.81ppt to 11.72%, thereby increasing CFG's total TAC for Peru by 4%. Management has revealed that the acquisitions were made at 6.5x EV/EBITDA which we believe is fair compared to CFG which is trading at 7.9x FY10 EV/EBITDA.
"As of June 28, CFG has US$49 million in cash and bank balances which is sufficient for funding the acquisition. We have factored these in our forecasts and raise our FY12 EPS estimates by 1%. Unchanged target price of $1.50. MAINTAIN BUY."
Company Name: CHINA FISHERY GROUP LIMITED
| Research House: DMG | Price Call: BUY | Target Price: 1.50 |
DMG & Partners Research in a Nov 9 research report says: "China Fishery (CFG) announced that they have acquired two Peruvian fishing companies for a total of US$26 million.
"Its share of North Peru TAC will increase by 0.16ppt to 6.21% and share of South Peru's by 0.81ppt to 11.72%, thereby increasing CFG's total TAC for Peru by 4%. Management has revealed that the acquisitions were made at 6.5x EV/EBITDA which we believe is fair compared to CFG which is trading at 7.9x FY10 EV/EBITDA.
"As of June 28, CFG has US$49 million in cash and bank balances which is sufficient for funding the acquisition. We have factored these in our forecasts and raise our FY12 EPS estimates by 1%. Unchanged target price of $1.50. MAINTAIN BUY."
No comments:
Post a Comment