Tuesday, March 28, 2006

China Fish( Report from UOB Kay Hian)

China Fishery up as parent Pacific Andes gains China Fishery Group Ltd, a coastal and industrial fishing operations enterprise, was higher following strong brokerage recommendations on its parent firm Pacific Andes Holdings. At 11.20 am, China Fishery was up 0.11 sgd or 4.3 pct at 2.69 on volume of 4.182 mln shares."Gains in Pacific Andes could have a spill over effect on China Fishery. Near-term support is around 2.65 and if the stock can clear above 2.72, there would be bias to rise above 2.77 for a test of 2.85 sgd," Kim Eng Securities said.CIMB-GK Research has started coverage of Pacific Andes Holdings Ltd (PAH) with an "outperform" recommendation and a target price of 1.22 sgd, noting the frozen food supplier's good growth prospects. CIMB-GK analyst Glenford Tan said that PAH's growth profile can be likened to Olam International's, while its stake in China Fishery bolsters its margins and ensures steady supply. "PAH has seen its net profit grow nearly 4 times from 2000-2005. Its business fundamentals are strong with good exposure still to China's increasing appetite for fish," Tan said.

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