trading. Gross margins also maintained yoy at a very healthy 23%..

Cumulatively, net profits formed 37% of ours and consensus FY07 estimates.

Revenues rose 21% yoy to HK$751.9m, which was lower than expected. The low

season usually stretches from 1Q-3Q, with 4Q usually forming over 50% of sales.

Nonetheless, growth was sufficiently healthy and driven by fish harvesting and

trading. Gross margins also maintained yoy at a very healthy 23%.

? Fish trading operations post decent growth. Fish trading operations alone

recorded a 16% yoy increase in net profits to HK$30.5m. This came on the back of

continued strong growth in Chinese demand for frozen fish meat. We expect China

to maintain a growth trend for frozen fish consumption due to increasing health

awareness as well as urbanised eating habits.Fish trading operations post decent growth. Fish trading operations alone

recorded a 16% yoy increase in net profits to HK$30.5m. This came on the back of

continued strong growth in Chinese demand for frozen fish meat. We expect China

to maintain a growth trend for frozen fish consumption due to increasing health

awareness as well as urbanised eating habits.

? Fishing operations showing stronger growth. CFG?s revenues increased 63%

yoy to US$39.3m while net profits surged 62% yoy to US$11.3m. This came on

the back of the new vessel operating agreement CFG signed with Alatir in Feb 06

that doubled fishing capacity in the Pacific Ocean. In addition, strong selling prices

of its products also contributed to the rise in revenues. CFG?s contribution to

PAH?s net profits grew 37% yoy to HK$27.7m. The completion of the Alexandra

acquisition in Peru in Oct 06 will also provide further growth as fishmeal sales

begin to contribute.Fishing operations showing stronger growth. CFG?s revenues increased 63%

yoy to US$39.3m while net profits surged 62% yoy to US$11.3m. This came on

the back of the new vessel operating agreement CFG signed with Alatir in Feb 06

that doubled fishing capacity in the Pacific Ocean. In addition, strong selling prices

of its products also contributed to the rise in revenues. CFG?s contribution to

PAH?s net profits grew 37% yoy to HK$27.7m. The completion of the Alexandra

acquisition in Peru in Oct 06 will also provide further growth as fishmeal sales

begin to contribute.

? Positive working capital due to a large reduction in receivables. Receivable

days declined to 46 days as at 30 Sep 06, from 64 days at end 1Q07. This should

allay concerns post 1Q07, which saw a spill over of fishing activity due to the late

maturation of roe in 4Q06 that led to higher receivables.Positive working capital due to a large reduction in receivables. Receivable

days declined to 46 days as at 30 Sep 06, from 64 days at end 1Q07. This should

allay concerns post 1Q07, which saw a spill over of fishing activity due to the late

maturation of roe in 4Q06 that led to higher receivables.

? Sum-of-parts TP reduced to S$1.29 from S$1.38, factoring a lower market value

of CFG. We lower FY07 estimates by 5% to account for the lower than expected

revenues. Nonetheless, PAH remains extremely cheap with trading operations

valued at a mere 2.5x FY07 P/E against an FY06-09 EPS CAGR of 27%.

Catalysts for now will be strong results. A 1.3 Sct dividend was declared, putting

PAH on course for a healthy yield of about 5%. Maintain Outperform.Sum-of-parts TP reduced to S$1.29 from S$1.38, factoring a lower market value

of CFG. We lower FY07 estimates by 5% to account for the lower than expected

revenues. Nonetheless, PAH remains extremely cheap with trading operations

valued at a mere 2.5x FY07 P/E against an FY06-09 EPS CAGR of 27%.

Catalysts for now will be strong results. A 1.3 Sct dividend was declared, putting

PAH on course for a healthy yield of about 5%. Maintain Outperform.