China Fishery Group

Thread Rating:
  • 2 Vote(s) - 3 Average
  • 1
  • 2
  • 3
  • 4
  • 5
#41
Fishing grounds can be depleted quickly within matters of a few years..

how will happen to this company? close shop? find a new fishing ground?
unsustainable...i think

(27-07-2012, 06:35 PM)yanziyang Wrote: Research report from DMG:

Trimming our FY13 earnings by 7%. China Fishery (CFG) is raising US$300m through Senior Notes at interest rate of 9.75% pa. The net proceeds will likely be used for (1) prepayment of long-term supply agreements (LSAs) estimated to cost between US$145m – US$174m, as well as (2) repayment of debt which is estimated at US$117m. We believe the net impact will dilute FY13 earnings by 7% to US$141m. We are positive on CFG for its North Pacific operation which has a strong track record of profitability. Key risk stems from its execution in the South Pacific. Currently trading at 4.7x FY13 P/E, CFG appears attractive compared to its five year historical mean of 9x. Maintain BUY with lower TP of S$1.00 (from S$1.20 previously) based on 6x FY13 P/E.

Proceeds to be used for new LSA and debt repayment. CFG intends to use the proceeds for prepayment of its 4th LSA. Its 4th LSA is currently contracted under a daily fee but negotiations for a prepayment option are ongoing. CFG also intends to use the proceeds to repay US$117 of loans due this year.

No financial impact expected on new LSA terms (from VOA terms). CFG has replaced its four vessel operating agreements (VOAs) with long-term supply agreements (LSAs). We understand that this should not have significant financial impact to CFG as the underlying commercial terms remain substantially unchanged. Replacing the VOAs with LSAs mainly reduces CFG’s role in providing assistance to operations of the fishing vessels.

Valuations attractive trading at 4.7x FY13 P/E. We think valuations appear attractive with CFG currently trading at 4.7x FY13 P/E. Our TP of S$1.00 is based on FY13 P/E of 6x, which is 28% lower than its peer average of 8.3x, and a 33% discount to its five year historical average P/E of 9x Maintain BUY.

(vested)
Reply
#42
Doubts for HY revival after China Fishery limps home

http://www.ifrasia.com/doubts-for-hy-rev...43.article [Article]

Quite an interesting view behind the scenes of the Senior Notes book building process.

(Not Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
Reply
#43
I think SGX and the rest of the investment community are idiotic in their believe that Chinese Business community are reliable and bona fide business. They are making a fool of themselves as much as being careful not to stoke liability in bringing such Co. without careful check on the background of the people behind these Co.

If you read it what has happened to Hong Xing it sound as if the directors are running scamp and yet the auditor dare not speak their mind. The whole bunch of lies and crafty statement about director are not aware the lending that goes on to subsidiary and suppliers are absurd!

Then there is this stupid The Edge article about ang mor being sympathetic to chinese SME and wanting to help them against short sellers! It sounded like the policing of the market by smart is guilty of revealing the crime that is the Co. own undoing in the first place!
This just show that how flawed the wishful thinking our leaders are - to the point that we convince ourselves that the chinese are learning from such mistake in check and balance? Looks to me HongXing directors get a pad on their back by having done a good job in convincing the auditor!! haaahhhaaaa...

Imagine the amount of money that would have been made just by shorting rubbish Co. listing. The constant raising of funding by Chinese Co. is clear and present danger The reason for funding for growth is to swindle bond and shareholder and that's how the Chinese Economy works in general! If you want to make money, SGX can make money - just bringing more of this Ang Mor that are great in snooping up crooks and we trade by shorting them!! haahaa

If chinese bank steer clear of lending them, why should singapore money be used to finance crooks!!

Let just watch and see how far and wide the entire chinese stock market will fall....It has happened in HK in the 70s before, and I think in the case of china, it could well be 100x more troublesome for communist to crack the SOE...a corrupt system breed corrupt SOE and the rest of the China Inc., destroy the entire society!!
Reply
#44
Are you referring CFG as a similar case?
Reply
#45
(30-07-2012, 03:36 AM)ValueBeliever Wrote: I think SGX and the rest of the investment community are idiotic in their believe that Chinese Business community are reliable and bona fide business. They are making a fool of themselves as much as being careful not to stoke liability in bringing such Co. without careful check on the background of the people behind these Co.

If you read it what has happened to Hong Xing it sound as if the directors are running scamp and yet the auditor dare not speak their mind. The whole bunch of lies and crafty statement about director are not aware the lending that goes on to subsidiary and suppliers are absurd!

Then there is this stupid The Edge article about ang mor being sympathetic to chinese SME and wanting to help them against short sellers! It sounded like the policing of the market by smart is guilty of revealing the crime that is the Co. own undoing in the first place!
This just show that how flawed the wishful thinking our leaders are - to the point that we convince ourselves that the chinese are learning from such mistake in check and balance? Looks to me HongXing directors get a pad on their back by having done a good job in convincing the auditor!! haaahhhaaaa...

Imagine the amount of money that would have been made just by shorting rubbish Co. listing. The constant raising of funding by Chinese Co. is clear and present danger The reason for funding for growth is to swindle bond and shareholder and that's how the Chinese Economy works in general! If you want to make money, SGX can make money - just bringing more of this Ang Mor that are great in snooping up crooks and we trade by shorting them!! haahaa

If chinese bank steer clear of lending them, why should singapore money be used to finance crooks!!

Let just watch and see how far and wide the entire chinese stock market will fall....It has happened in HK in the 70s before, and I think in the case of china, it could well be 100x more troublesome for communist to crack the SOE...a corrupt system breed corrupt SOE and the rest of the China Inc., destroy the entire society!!


Our stock exchange, in a desperate attempt to raise earnings, would do whatever it takes to attract companies to list here. Out of every 10, perhaps 1 of investment grade, 2 mediocre, and the remaining 7 are Sh**. These 7 come here to suck money from naive investors ( i was one such idiot when i first started buying shares, my initial portfolio consisted of Sh** like erata, cacoa, cmilk, ferroc, csky, celestal, taisan .. in retrospect, i was really lucky to make money out of these Sh** counters)
Reply
#46
(30-07-2012, 03:36 AM)ValueBeliever Wrote: I think SGX and the rest of the investment community are idiotic in their believe that Chinese Business community are reliable and bona fide business. They are making a fool of themselves as much as being careful not to stoke liability in bringing such Co. without careful check on the background of the people behind these Co.

If you read it what has happened to Hong Xing it sound as if the directors are running scamp and yet the auditor dare not speak their mind. The whole bunch of lies and crafty statement about director are not aware the lending that goes on to subsidiary and suppliers are absurd!

Then there is this stupid The Edge article about ang mor being sympathetic to chinese SME and wanting to help them against short sellers! It sounded like the policing of the market by smart is guilty of revealing the crime that is the Co. own undoing in the first place!
This just show that how flawed the wishful thinking our leaders are - to the point that we convince ourselves that the chinese are learning from such mistake in check and balance? Looks to me HongXing directors get a pad on their back by having done a good job in convincing the auditor!! haaahhhaaaa...

Imagine the amount of money that would have been made just by shorting rubbish Co. listing. The constant raising of funding by Chinese Co. is clear and present danger The reason for funding for growth is to swindle bond and shareholder and that's how the Chinese Economy works in general! If you want to make money, SGX can make money - just bringing more of this Ang Mor that are great in snooping up crooks and we trade by shorting them!! haahaa

If chinese bank steer clear of lending them, why should singapore money be used to finance crooks!!

Let just watch and see how far and wide the entire chinese stock market will fall....It has happened in HK in the 70s before, and I think in the case of china, it could well be 100x more troublesome for communist to crack the SOE...a corrupt system breed corrupt SOE and the rest of the China Inc., destroy the entire society!!

Don't think Pac Andes / CFG family are your typical S Chips. For one, the Ng family are Malaysian Chinese and CFG vessels primarily operate under the Russian flag.

(Not Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
Reply
#47
According to annual report of CFG and its parent company Pac Andes, their Executive Directors are not local Chinese. (Refer to the chapter of PROFILE OF DIRECTORS AND SENIOR MANAGEMENT)

(vested)
Reply
#48
I am wary of Chinese companies that have loads of cash and no debt (irony!) mainly because i they are unable to borrow any.
Reply
#49
CHINA FISHERY ANNOUNCES 9MFY2012 RESULTS

http://info.sgx.com/webcoranncatth.nsf/V...3003396AE/$file/CFGL-Results_Announcement_3QFY2012.pdf?openelement [SGX Announcement]

http://info.sgx.com/webcoranncatth.nsf/V...30036020B/$file/CFGL-PressRelease3QFY2012.pdf?openelement [Press Release]

(Not Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
Reply
#50
*For the full article, please visit the website.

The Straits Times
www.straitstimes.com
Published on Aug 09, 2012
Pac Andes, China Fishery reel in smaller catch

Domino effect of delay in start of fishing season drags down profits

By Dennis Chan Deputy Money Editor

PACIFIC Andes Resources Development and its subsidiary China Fishery Group have reported a sharp tumble in third-quarter net earnings.

Pacific Andes' net profit for the three months to June 28 fell by 42.7 per cent to HK$146.1 million (S$23.5 million) on the back of a 14.7 per cent drop in revenue to HK$2.53 billion.

Net profit at China Fishery slumped 43.8 per cent to US$21 million (S$26 million) while revenue declined 19.7 per cent to US$152.6 million.

The fall in sales was mainly due to lower revenue contribution from the Peruvian fishmeal operations, as a result of a delay in the commencement of the first fishing season.

Revenue from the Peruvian fishmeal operations, which accounted for 30.8 per cent of total revenue, fell by 41.6 per cent to US$47 million.

On the other hand, revenue from the North Pacific operations, which accounted for 64.4 per cent of total revenue, rose by 9.3 per cent to US$98.2 million, thanks to higher sales volume.

China Fishery's earnings per share slipped to 2.05 US cents from 3.66 US cents previously while net asset value per share firmed to 81 US cents compared with 76 US cents as of Sept 28 last year.

Poorer contribution from China Fishery had a trickle-down effect on parent Pacific Andes.

The latter reported a 19.7 per cent drop to HK$1.19 billion in revenue from the fishery and fish supply division, which accounted for 47 per cent of group revenue.

This was due primarily to a delay in the start of the first fishing season in Peru and the comparatively higher fishmeal prices prevailing in the corresponding quarter last year.

The delivery of fishmeal and fish oil would be deferred to the fourth quarter.
-----------------
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
Reply


Forum Jump:


Users browsing this thread: 16 Guest(s)