DBS Vickers upgrades China Fishery to buy

Stock Name: China Fish
Company Name: CHINA FISHERY GROUP LIMITED

Research House: DBS Vickers

Price Call: BUY

Target Price: 1.32

DBS Vickers upgraded its rating to buy from hold and raised its share price target for Singapore-listed China Fishery Group to $1.32 from $0.95, citing attractive valuations and a stable operating outlook.

Shares of China Fishery were up nearly 2% at $1.05 and have gained 15% so far this year.

DBS said it expects China Fishery's second quarter net profit to grow 5 to 10% year-on-year to US$48-$50 million ($60- $62 million), driven by a stronger contribution from its fishmeal operations and interest savings on an earlier refinancing of senior notes.   

“While fishmeal prices have softened since reaching a high of about US$2,000/metric ton in 2010, the higher quantities should offset any price declines,” DBS said.

 China Fishery has an attractive dividend yield of about 5% at current prices, it added.