Phillip Securities Research in an April 20 research report says: "1Q10 Revenue $23.2 million (+0.37% y-o-y, -2.64% q-o-q). 1Q10 net profit attributable to shareholder $1.4 million (+0.93% y-o-y, -21.5% q-o-q). Gross profit margin and net profit margin were 31.9% and 6.6% in 1Q10 respectively.
"During the quarter, Qian Hu continues to pare down its debt. Despite doing so, it has managed to increase its cash balance to $11.4 million, raising $0.9 million from warrant conversion. We were slightly disappointed with the 1Q10 results.
"We had expected the completion of the Malaysia and Singapore fish farms to contribute positively. As mentioned in the results release, a drought had affected the supply of the dragon fish fries, and could affect sales into the second quarter. We maintained our revenue forecast for now and peg our fair value to FY2010E book value of 18 cents. MAINTAIN BUY."
