| Latest Forum Topics / China Fishery Last:0.076 -- |
 Post Reply
|
|
China Fishery - Low PE
|
|||
|
newbie888
Member |
08-Aug-2013 00:42
|
||
|
x 0
x 0 Alert Admin |
was wondering, how come it states improved 3Q result even when there is a drop in net profit? | ||
| Useful To Me Not Useful To Me | |||
|
Blanchard
Senior |
07-Aug-2013 21:58
Yells: "Winners cry..... Losers smile....." |
||
|
x 0
x 0 Alert Admin |
China Fish 3Q net profit was down 28.7% to US$15 million, and 3Q revenue was flat at US$152 million...... 3Q % 9M results: http://www.chinafisherygroup.com/attachment/2013080718213417_en.pdf
Elaborating on the benefits of the acquisition of Copeinca for the Group, Mr Ng said: " The Group expects to benefit from the Copeinca acquisition in FY2014. This acquisition presents a long-term value proposition for the growth of overall business, as well as represents a transformative progression to elevate China Fishery to become Peru’s largest producer of fishmeal and fish oil. The Group would also be amongst the world’s largest producers of fishmeal and fish oil."
Looking ahead and barring any unforeseen circumstances, the Group is confident of continued profitability for the next quarter and the year. |
||
| Useful To Me Not Useful To Me | |||
|
|
|||
|
kewe81
Member |
07-Aug-2013 16:55
|
||
|
x 0
x 0 Alert Admin |
China Fishery to keep seeking out acquisitions post Copeinca August 6, 2013, 2:05 pm Undercurrent News As it is about to become one of the world’s largest fishmeal producers, China Fishery Group said it will continue to explore acquisition opportunities, both upstream and downstream, following its takeover of Copeinca. After a long and hard battle, with many twists and turns along the way, the Pacific Andes-owned Chinese fishing group looks set to fully take over Copeinca, Peru’s second largest fishmeal producer, in a NOK 4.786 billion ($806m) deal. China Fishery recently said shareholders holding 97.7% of shares in Copeinca have accepted to sell their shares to China Fishery’s Singapore subsidiary, Grand Success Investment, at NOK 68.17 per share, in cash. Combined, the two companies will control 16.9% of fishing quotas in north and central Peru, putting them ahead of TASA, which is today the leader with 14.1%. They would also own 14.7% of the catch quotas in the south. This growth might not end there. In a document on the acquisition released on Aug. 6, China Fishery says it will continue to pursue other opportunities. The group will “continue to explore, evaluate and pursue future acquisition opportunities”, says China Fishery in the document. “The enlarged group will continue to explore opportunities as and when they arise to increase fishing quotas by acquiring additional fishing vessels in places such as Peru and to seek additional fishmeal processing plants in attractive locations.” China Fishery will also seek to save on costs by carrying out joint marketing efforts and cross-selling fish products across Copeinca’s existing sales and distribution channels. Gearing production more towards human consumption will also be a goal, it said. “The enlarged group will actively seek to enhance its profitability by increasing catch which can be sold for human consumption.” Reducing pollock reliance While Copeinca is purely focused on anchovy fishing and processing for fishmeal and oil production, China Fishery’s core business, by far, consists of its significant supply agreements for pollock from the Russian North Pacific. It also catches pelagics (mainly jack mackerel) in the South Pacific and off West Africa. Becoming one of the world’s largest fishmeal producers will therefore reduce its reliance on the Russian pollock business. The latter has faced increasing uncertainty since an investigation by Russian authorities on foreign interests in the country. “The company’s sale of fish products under the contract supply business [mainly Russian pollock] constitutes the largest percentage of the company’s total revenue,” China Fishery said in its stock exchange announcement on Feb. 26, when it first unveiled its bid for Copeinca. “After the acquisition, the revenue and profit derived from the company’s Peruvian fishmeal operations would significantly increase and hence reduce dependence on revenue and profit generated from the contract supply business.” Offloading 25% Commenting on Copeinca’s stock listing in Oslo and Lima, China Fishery said its “current intention” is to maintain the shares traded on both exchanges. In the case of the Oslo stock exchange, this might require China Fishery to sell shares in Copeinca, to meet the exchange’s public float requirements, it said. The Oslo stock exchange requires that listed companies have at least 25% shares in free float. | ||
| Useful To Me Not Useful To Me | |||
|
stockpicker
Member |
07-Aug-2013 07:03
|
||
|
x 1
x 0 Alert Admin |
Obviously, there are good reasons for them to acquire Copeinca otherwise, they won't offer 14% more than Cermaq. Their final bid is almost 30% higher than its original one. Some said they are desperate. Some said they have no choice. Others see CF to become the World largest fish meal producer. For whatever reasons, the deal is done. It has caused Fitch to downgrade the outlook. The share price should reflect the changes as they report the results. |
||
| Useful To Me Not Useful To Me | |||
|
livelife
Member |
06-Aug-2013 23:25
|
||
|
x 1
x 0 Alert Admin |
Just my opinion on the takeover: Ng family has such high stake and need to pay so much cash too. They must want to make money either through the business or to raise the price of their shares so that they can reap the benefits by selling higher later. | ||
| Useful To Me Not Useful To Me | |||
|
|
|||
|
stockpicker
Member |
06-Aug-2013 08:08
|
||
|
x 0
x 0 Alert Admin |
Yes and no.. the minority investors can always be swallowed..
|
||
| Useful To Me Not Useful To Me | |||
|
livelife
Member |
05-Aug-2013 22:36
|
||
|
x 0
x 0 Alert Admin |
Ng family own >70% of shares. So when they raise cash then wont they have to pay >70% cash too ? Also , if they have such a big stake wont their interest be aligned to the company doing well ? | ||
| Useful To Me Not Useful To Me | |||
|
starlene
Elite |
05-Aug-2013 19:49
|
||
|
x 0
x 0 Alert Admin |
EGM thur Aug 22 930a,m http://infopub.sgx.com/FileOpen/ChinaFishery-EGM.indd.ashx?App=Announcement& FileID=250842 |
||
| Useful To Me Not Useful To Me | |||
|
|
|||
|
stockpicker
Member |
05-Aug-2013 10:25
|
||
|
x 0
x 0 Alert Admin |
CF's last quarter report showed that its finance cost is around $14.7 mil with profit after tax around $ 51.0 mil.. the ratio is about 30%. This has not included the recent borrowings to acquire Copeinca which was estimated to be around $1.0 b which is almost 150% of its present market cap..not sure what was the interest rate but definitely not less than 10% after 3 rating agencies have degraded their rating with negative outlook.
|
||
| Useful To Me Not Useful To Me | |||
|
stockpicker
Member |
05-Aug-2013 10:06
|
||
|
x 0
x 0 Alert Admin |
Share investors should benefit from company's expansion if it can be done without pain. In this respect, CF borrowed money at about 10% interest rate where the return of asset is only about 5% and the latest dividend yield around 4% with historical dividend yield around 2%. Both the company and its investor, esp the small retail investors will suffer longer term if the company's real growth cannot reach escape velocity. Just another view. | ||
| Useful To Me Not Useful To Me | |||
|
newbie888
Member |
04-Aug-2013 22:31
|
||
|
x 1
x 0 Alert Admin |
if they are able use the money from shareholders to expand their business and create more values for the shareholders then why is it a bad thing? its not their first time making acquisition to diversify their business risk although this is their biggest so far.. so whether they jus want $$ from the shareholder or what, only time will tell...so we can only wait and see how this acquisition will progress from here...shall not take side too extremely in case I eat my words next time...lol.. | ||
| Useful To Me Not Useful To Me | |||
|
iwonder
Veteran |
04-Aug-2013 21:27
|
||
|
x 0
x 0 Alert Admin |
No use taking over this and that or whatever contract. What they want is shareholders $$ Same as Pacific Andes, every now and then wants $$ AVOID |
||
| Useful To Me Not Useful To Me | |||
|
|
|||
|
sgxwinner
Member |
04-Aug-2013 21:23
Yells: "SGXWINNER BLOGSPOT SG" |
||
|
x 0
x 0 Alert Admin |
Avoid this counter as well.... | ||
| Useful To Me Not Useful To Me | |||
|
stockpicker
Member |
04-Aug-2013 20:48
|
||
|
x 0
x 0 Alert Admin |
There should be a contract already signed. the other parties can sue like what CF is suing one of Copeinca shareholders for refusing to sell his holding to CF.
|
||
| Useful To Me Not Useful To Me | |||
|
newbie888
Member |
04-Aug-2013 18:37
|
||
|
x 0
x 0 Alert Admin |
am I right to say that most of the 97% is only acceptance by the copeinca shareholders and CFGL has not officially buy them over? The acquisition news seems to have little or no positive impact on the counter's price... | ||
| Useful To Me Not Useful To Me | |||
|
stockpicker
Member |
02-Aug-2013 08:20
|
||
|
x 0
x 0 Alert Admin |
Thanks Blanchard for the article which was quite confusing http://www.nfr.ru/en/smi/detail.php?ELEMENT_ID=12068 Think the above article was trying to say:- " 1) In late 2011, Ng family got $400 millions when company shared its 20% capital with the shareholders 2) In Feb to May 2012, the share price dropped 39% when the Russians started to act 3) Shareholders then raised questions but the company explained that it was in the small print of the 185-page prospectus of the bond issue that the company could not assure the Russians would not act 4) The company then offered to buy back the 20% shared capital at prevailing stock price which was 39% down since 2011. According to the article, the company earned 160 million 5) The rest of $ 1.20 billion was earned when the Russians spent about $1.0 billion to repurchase the assets from the foreign companies including those of China Fishery and Andes Pacific." Just not quite sure how the $ 1.2 billions all added up. |
||
| Useful To Me Not Useful To Me | |||
|
Blanchard
Senior |
01-Aug-2013 23:49
Yells: "Winners cry..... Losers smile....." |
||
|
x 0
x 0 Alert Admin |
Just saw this article dated 3 Jul 13: http://www.nfr.ru/en/smi/detail.php?ELEMENT_ID=12068 .....sharing from a different perspective..... |
||
| Useful To Me Not Useful To Me | |||
|
newbie888
Member |
01-Aug-2013 23:08
|
||
|
x 0
x 0 Alert Admin |
97.7% of Copeinca acquired? | ||
| Useful To Me Not Useful To Me | |||
|
starlene
Elite |
01-Aug-2013 18:27
|
||
|
x 1
x 0 Alert Admin |
http://infopub.sgx.com/FileOpen/CFGL-Copeinca-010813.ashx?App=Announcement& FileID=250318
|
||
| Useful To Me Not Useful To Me | |||
|
guoyanyunyan
Elite |
29-Jul-2013 14:56
Yells: "uncertainty always exist" |
||
|
x 0
x 0 Alert Admin |
China Fishery Group settles Copeinca share dispute .... China Fishery Group raised its stake in Peruvian fish feed maker Copeinca to 74.3% from 65.3% after settling a dispute with a Peruvian investor who had refused to sell, Copeinca said in a statement on Friday. Singapore-listed China Fishery Group has been seeking to buy shares from Peru’s Veramar Azul S.L. through a call option and has threatened the firm with arbitration over its failure to honour the option. The firms have now reached a settlement and Veramar has transferred its shares, putting China Fishery Group one step closer to completing its takeover of Oslo-listed Copeinca. China Fishery Group has been pursuing Copeinca for months. It has bought 17.2% of the shares and securing pre-acceptances for another 57% in a public offer which remains open until July 31. Copeinca, worth US$806 million ($1.01 billion) at current prices, was trading unchanged on the Oslo bourse on Friday. |
||
| Useful To Me Not Useful To Me | |||