China Fishery    Last:0.076   -

China Fishery - Low PE

With a currently robust Peruvian Anchovy biomass level estimated at between 10.8 million tonnes and 12.1 million tonnes, the Peruvian Government increased the TAC for the second fishing season (from November 2013 to January 2014) to 2.3 million tonnes. This is 2.8 times higher compared to the same fishing season last year. This is strong evidence that the Peruvian Anchovy resource is sustainable and is well managed under an effective fishery management policy adopted by the Peruvian Government.


This significant increase in the TAC of Peruvian Anchovy, coupled with the rising demand for fish globally, augurs well for the fishmeal and fish oil business. China Fishery is therefore well-positioned to capitalize on these positive trends with the foundation that it has been laying during the past years through a number of acquisitions in Peru. With the recent Copeinca Acquisition, the Group has become the largest holder of Peruvian Anchovy quota (16.9% catch quota in North and Central Peru and 14.7% in South Peru) and a leading world producer and exporter of fishmeal and fish oil.

 

Ok, for the sake of above positive news from management, i load some first.

 

Overall, I am positive with next 6 month development. Will vest it once out from other counter.

Let see how low can price go after result announcement since some people are disappointing with the less dividend and sold the share this morning.

 

I won't think this is a bad result but just how the management to clear their debt.

Especially, before the acquisition story, what bring China fish down from high was their debts and  300M senior  notes with 9.75% interest to fund the prepayment to supplier, matured by 2019.  I notice another 250M senior note is added in this quarter. 

https://shareinvestor.com/news/news.html?source=si_express& nid=50489

China fishery only have limited cash on hand. They have to find a way to find cash and their business model has been questioned previously for non cash generation after tons of profit is announced. Very similar to China Minzhong.

For long term, this is not a good stock to hold. However, for short term depend on individual skill, especially current price is with PE of 6 and dividend payment of 2.6%(But record low compared to past), anytime can bounce up & down.

Blanchard      ( Date: 25-Nov-2013 12:01) Posted: Thanks, ynnek1267. Can presume the results meet our expectation? Meanwhile can enjoy the 1 cent dividend (2.56% yield at 0.39).

 

Thanks, ynnek1267. Can presume the results meet our expectation? Meanwhile can enjoy the 1 cent dividend (2.56% yield at 0.39).

 

This quarter include all the assets and liability from the acquisition.

Total Asset increase from 1.875 US Billion to 2.819 US Billion, + 50%

Total Reliability increase from 0.72US Billion to 1.646US Billion, +128%

The net asset value (NAV) of the acquisited company is only 0.018Billion. Basically is a very high debt company.

China Fish buy this company is not for the actual value of the company but just for the market domination in Peru Fishery Market to make them to be the biggest fish meal and oil  operator in Peru.

 

Debt increase. Lower profit compared to last Q due to higher interest expense after acquistion.

srichipan      ( Date: 25-Nov-2013 11:42) Posted: anyone can dissect the financial statement and see what's wrong? seems like that they added a fair value gain of their acquisition?

 

anyone can dissect the financial statement and see what's wrong? seems like that they added a fair value gain of their acquisition? 

 

Give you opportunity to accumulate more

srichipan      ( Date: 25-Nov-2013 11:28) Posted: new intrinsic value $0.74. Operating cash flow grew quite alot

 

cos of results reflecting drop in revenue? even then...

srichipan      ( Date: 25-Nov-2013 11:29) Posted: not sure why price drop though

 

not sure why price drop though

 

new intrinsic value $0.74. Operating cash flow grew quite alot

 

 

CHINA FISHERY ANNOUNCES FY2013 RESULTS

 * 7.3% increase in net profit attributable to shareholders

 * Becomes Peru?s largest fishmeal and fish oil producer, following successful completion of Copeinca acquisition

 * Better positioned to capture a share of the fast growing aquaculture segment as major supplier of feed inputs

Singapore, 25 November 2013 ? Singapore Exchange Mainboard-listed industrial fishing company China Fishery Group Limited (" China Fishery" or the " Group" ) (SGX: B0Z.SI) today reported its results for the full year ended 28 September 2013 (" FY2013" ). The FY2013 results included a maiden one month (from 31 August 2013 to 28 September 2013) contribution from Copeinca ASA (" Copeinca" ), in which the Group had acquired a 99.1% equity stake on 30 August 2013.

With the recent completion of Copeinca acquisition, the Group has become the largest holder of Peruvian Anchovy quota and a leading producer and exporter of fishmeal and fish oil in the world. The Group expects to capitalize on this new position of strength to generate additional revenue opportunities, as well as to derive significant cost savings. The Group also endeavours to build on the enlarged business platform with a stronger capital base to support its continued growth.

During the year under review, net profit attributable to shareholders increased by 7.3% from US$78.1 million to US$83.8 million, despite revenue decreasing by 8.1% to US$555.0 million. The Group?s newly established fishing operations in Namibia contributed positively to the performance of China Fishery Fleet while Peruvian Fishmeal Operations benefitted from higher average selling prices of fishmeal / fish oil, as well as maiden revenue contribution from Copeinca. These positive contributions partially offset the reduction in revenue due to the substantial reduction in Total Allowable Catch (" TAC" ) for Peruvian Anchovy in the 2012 second fishing season.

The board of directors recommended payment of a first and final dividend of 1.0 Singapore cent per share for FY2013 (FY2012:1.9 Singapore cents) after taking into account of the one to one rights issue during the year.

 

Commenting on the Group?s developments in FY2013, Group Managing Director Mr Ng Joo Siang said, " FY2013 was a year of momentum and transformation for China Fishery. We achieved our goal of increasing access to under-utilized and sustainable marine resources. Following the successful acquisition of Copeinca, we look forward to Peruvian Fishmeal Operations becoming a driver of future growth for the Group. We also expect our newly established fishing operations in Namibia to be an exciting contributor going forward."

With a currently robust Peruvian Anchovy biomass level estimated at between 10.8 million tonnes and 12.1 million tonnes, the Peruvian Government increased the TAC for the second fishing season (from November 2013 to January 2014) to 2.3 million tonnes. This is 2.8 times higher compared to the same fishing season last year. This is strong evidence that the Peruvian Anchovy resource is sustainable and is well managed under an effective fishery management policy adopted by the Peruvian Government.

This significant increase in the TAC of Peruvian Anchovy, coupled with the rising demand for fish globally, augurs well for the fishmeal and fish oil business. The Food and Agriculture Organisation of the United Nations estimates that an additional 50 million tonnes of farmed fish will be required to meet the demand of the rising world population by 2030. Fishmeal and fish oil are key feed input in aquaculture. China Fishery is well-positioned to capitalize on these positive trends with the foundation that it has been laying during the past years through a number of acquisitions in Peru.

" Looking forward to FY2014, China Fishery will focus on the creation and realisation of synergies and cost savings from the Copeinca acquisition. The Group will also explore the possibility of increasing the value of the catch by promoting Peruvian Anchovy for direct human consumption. This presents a long-term value proposition for the overall growth of the Group?s business." Mr Ng said.

The Group will retain Copeinca?s listing status on Oslo Børs in this period when it is considering various strategic options for improving the Group?s organisational and capital structures. The Group remains committed in its efforts to strengthen its balance sheet in order to grow its business in the future.

 

possible but is only interim. in the long run this stock will go up in value.

srichipan      ( Date: 22-Nov-2013 15:15) Posted: haha yeah bro danytan. I do however think that the recent acquisition might have some impact on their results in terms of the expenses involved.

 

haha yeah bro danytan. I do however think that the recent acquisition might have some impact on their results in terms of the expenses involved. 

 

their good year end results you mean. :)

srichipan      ( Date: 22-Nov-2013 12:20) Posted: Swee. upcoming good news will be next tuesday when they release their year end results. :)

 

Swee. upcoming good news will be next tuesday when they release their year end results. :)

 

  Bro Srichipan, the future of this industry is getting brighter and larger ... we should see more good news.   

 

Precisely Srichipan, .... I agreed with you 101%, this BB has intrinsic value ..... What do you do when you find a pearl of tremendous great price ? 

I am not looking at short term .... that is why I left the chat. I am now focus on Year End Celebrations and Holidays.

Blessed Christmas to all !!! 

handongni      ( Date: 15-Nov-2013 20:55) Posted: good effort in work out the intrinsic value. i like. srichipan      ( Date: 15-Nov-2013 00:08) Posted: Haha 60 is the intrinsic value. Calculated by factoring operating cash flow, debts, cash, growth rate, number of shares outstanding etc. based on its last annual Reports. Once it releases the new report I will calculate the figure again and update you guy

 

The results isn't actually out of expectation. their 3rd quarter losses was accrued from severance package because of china fish takeover. Losses for 9 month period was also due to 1st quarter's lower quota allocated for copeinca. So results are within expectation actually. 

It will also be hard for the company to give out dividend considering their high interest arising from the notes they issued. Their cash flow will definitely be affected. 

flyfox      ( Date: 16-Nov-2013 01:52) Posted: sad ah lose money.   I hope it wont affect the dividend payout for ChinaFish this time round :( Blanchard      ( Date: 15-Nov-2013 19:51) Posted:         THIRD QUARTER 2013 FINANCIAL RESULTS Copeinca successfully finished its first fishing season quota on July 31st 2013, 100% of our quota was caught, despite of operational challenges. Revenues as of September 30th 2013 were USD 156.5 million (90,552 MT) and EBITDA was USD 46.4 million (representing 30% of net sales), compared to revenues of USD 264.9 million (188,844 MT) and EBITDA of USD 96.0 million (36% of net sales) in the same period of last year. Revenues in Q3?13 were USD 101.9 million (63,716 MT) and EBITDA was USD 34.7 million (representing 34% of net sales), compared to revenues of USD 96.8 million (61,200 MT) and EBITDA of USD 37.4 million (39% of net sales) in the same period of last year. Revenue per ton sold for the nine months of 2013 had an average of USD 1,728/MT including USD 4.3 million revenues from the sale of Mackerel and Jack Mackerel (7,386 MT) up from USD 1,403/MT in 2012 including USD 4.3 million revenues from the sale of Mackerel and Jack Mackerel (11,869 MT). Revenue per ton in Q3?13 was USD 1,599/MT up from USD 1,582/MT in Q3?12.   As of September 30th 2013, the CAPEX approved for 2013 is USD 14 million, out of which USD 11 million were executed. http://www.chinafisherygroup.com/attachment/2013111517401817_en.pdf

 

sad ah lose money.

 

I hope it wont affect the dividend payout for ChinaFish this time round :(

Blanchard      ( Date: 15-Nov-2013 19:51) Posted:         THIRD QUARTER 2013 FINANCIAL RESULTS Copeinca successfully finished its first fishing season quota on July 31st 2013, 100% of our quota was caught, despite of operational challenges. Revenues as of September 30th 2013 were USD 156.5 million (90,552 MT) and EBITDA was USD 46.4 million (representing 30% of net sales), compared to revenues of USD 264.9 million (188,844 MT) and EBITDA of USD 96.0 million (36% of net sales) in the same period of last year. Revenues in Q3?13 were USD 101.9 million (63,716 MT) and EBITDA was USD 34.7 million (representing 34% of net sales), compared to revenues of USD 96.8 million (61,200 MT) and EBITDA of USD 37.4 million (39% of net sales) in the same period of last year. Revenue per ton sold for the nine months of 2013 had an average of USD 1,728/MT including USD 4.3 million revenues from the sale of Mackerel and Jack Mackerel (7,386 MT) up from USD 1,403/MT in 2012 including USD 4.3 million revenues from the sale of Mackerel and Jack Mackerel (11,869 MT). Revenue per ton in Q3?13 was USD 1,599/MT up from USD 1,582/MT in Q3?12.   As of September 30th 2013, the CAPEX approved for 2013 is USD 14 million, out of which USD 11 million were executed. http://www.chinafisherygroup.com/attachment/2013111517401817_en.pdf