Stock Name: China Fish
Company Name: CHINA FISHERY GROUP LIMITED
DBS Vickers Securities in an Apr 23 research report says: "We turn from neutral to positive, as we are now projecting a sustained earnings growth in FY2012F, after a disappointing FY2011. "We expect earnings growth in 1Q12 to continue and project 2Q12 net profit to grow c.5-10% y-o-y to c.US$48-50 million due to a stronger contribution from its fishmeal operations, as well as interest savings from an earlier refinancing of its senior notes. "The counter is now trading at 6.5x/6.1x on FY2012F/2013F earnings, near -1 std deviation below its average of c.9.8x. We have raised our FY2012F/2013F net profit forecasts by 5.6%/8% respectively to reflect lower interest costs. "We believe the share price should be supported by a healthy yield of c.5% for FY12F. Target price is raised to $1.32, based on 8x FY12/13F PE (-0.5 std dev), equating to a total return of c.33%. UPGRADE TO BUY."
Company Name: CHINA FISHERY GROUP LIMITED
| Research House: DBS Vickers | Price Call: BUY | Target Price: 1.32 |
DBS Vickers Securities in an Apr 23 research report says: "We turn from neutral to positive, as we are now projecting a sustained earnings growth in FY2012F, after a disappointing FY2011. "We expect earnings growth in 1Q12 to continue and project 2Q12 net profit to grow c.5-10% y-o-y to c.US$48-50 million due to a stronger contribution from its fishmeal operations, as well as interest savings from an earlier refinancing of its senior notes. "The counter is now trading at 6.5x/6.1x on FY2012F/2013F earnings, near -1 std deviation below its average of c.9.8x. We have raised our FY2012F/2013F net profit forecasts by 5.6%/8% respectively to reflect lower interest costs. "We believe the share price should be supported by a healthy yield of c.5% for FY12F. Target price is raised to $1.32, based on 8x FY12/13F PE (-0.5 std dev), equating to a total return of c.33%. UPGRADE TO BUY."
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