China Fishery Group's gains took a deep 25% dive

Net loss amounted to US$14.9m.

According to DBS, CFG’s 4Q/FY12 results were below consensus and our expectations. FY12 core net profit fell by 25% y-o-y to US$78.1m, with 4Q registering a net loss of US$14.9m, the first quarterly loss for CFG.

Here's more from DBS:

Revenue for FY12 fell by 12% on the back of a sharp 59% y-o-y drop in contribution from its South Pacific (SP) fishery fleet.

The Peruvian operations contributed a strong growth in PAT to US$18.3m, but this failed to offset huge loss of US$26.9m incurred by its SP fishery fleet.

DPS of 1.9Scts was proposed, equating to a payout ratio of c.20%, below the Group’s past practice of one-third payout ratio. Management indicated that it had adopted a more prudent approach, in view of its current operating results.

This equates to a yield of just 2.8%, a disappointment, in our view.

We cut our FY13F/14F forecasts by 36% and 28%, arising from (i) a lower harvest quantity assumed for its South Pacific fishery fleet; (ii) lower fishmeal/oil sales volume, offset partially by higher ASP.

The latest Peruvian Anchovy season in Nov-Dec12 saw quotas of just 810k mt, down 70% from 2.5m mt a year ago. We see continued challenges ahead for the Group, and weak operating results.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!