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China Fishery - Low PE
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Polarbear55
Senior |
21-Aug-2013 19:33
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Today almost become fried fish! :p | ||
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stockpicker
Master |
21-Aug-2013 18:43
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What they referring to is that the EBITDA has improved some 9%. EBITA is one that many companies used to dress up the earnings. But don't forget EBITDA is before interest, tax etc. So it stands very pretty when the finance cost is taken away.. but CF's finance cost increased 114% as compared to last quarter. It is quite misleading to quote EBITDA in this case.
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serialain
Member |
20-Aug-2013 09:17
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I certainly hope it becomes flying fish! | ||
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Polarbear55
Senior |
19-Aug-2013 23:55
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Waiting patiently.
A breakout above $0.395 and it will be Flying Fish!! |
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serialain
Member |
19-Aug-2013 17:39
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wah copeinca had a drop in q2 profit, but I guess this was not unexpected. This stock is really not for the faint hearted | ||
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Blanchard
Master |
14-Aug-2013 00:37
Yells: "Winners cry..... Losers smile....." |
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Interesting news..... Baltimore researchers turn carnivorous fish into vegetarians..... http://www.washingtonpost.com/national/health-science/baltimore-researchers-turn-carnivorous-fish-into-vegetarians/2013/08/11/46fc967e-0130-11e3-9711-3708310f6f4d_story.html < for your reading pleasure> |
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newbie888
Veteran |
12-Aug-2013 23:47
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hopeful that once the fishing quota is back to normal, their debt burden wld be lessen, since these periods the govt seems to be suppressing the allowable catch of the fishes. | ||
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stockpicker
Master |
12-Aug-2013 20:15
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Here is one article about CF needs to pay bondholders for acquiring Copeinca as it was being downgraded. CF will need to find this money somewhere.. " China Fishery Group may find itself having to pay $275 million upfront to Copeinca bondholders as a result of its acquisition of the Peruvian fishmeal producer. Under the terms of a $250m bond that Copeinca currently holds, a call option to repay the bond at a value of 101% is triggered in the event Copeinca changes ownership, while also being downgraded by one of its credit ratings agencies. The amount must be repaid within 30 days of these events happening, says Copeinca?s bond offer document. The first condition will be met very soon, as China Fishery is about to finalize its acquisition of Copeinca anytime now. Meanwhile, there is also a strong chance that the second condition will be triggered soon, said a source close to Copeinca. This source pointed out that Copeinca?s second quarter is expected to be fairly poor, due to low catches and a late season that delayed sales beyond the end of June. This in itself increases the risk of a downgrade. Another key factor, he said, will be what China Fishery decides to do on the management front. ?The credit agencies are watching very closely what is happening with Copeinca?s management. If they see changes there, this could definitely trigger a downgrade.? Earlier this week, China Fishery said it might delist Copeinca, a day after saying its intention was to keep it trading on the Oslo stock exchange. A trigger of the repayment could be tricky for China Fishery, which has had to increase its leverage drastically to carry out the acquisition of Copeinca. The company?s main funding sources for the acquisition include $281m cash raised from a rights issue, and a one-year bridging loan facility of up to $402m from DBS and Rabobank. In one of its numerous acquisition documents, China Fishery says it was confident it could secure the financing needed to pay or refinance the bond thanks to its ?good relationship? with its principal bankers, although it later says there is no assurance this can be obtained ?on satisfactory terms?. Bondholders, meanwhile, may decide not to sell at 101. The bond is currently trading at 103, said one US-based Copeinca bondholder, asking not to be quoted by name. This bondholder said they are in the process of considering their options, including the option to sell their bond now, depending on bids. From bondholders? perspective, the main risk with the acquisition lies in China Fishery?s higher leverage, and lower credit rating. China Fishery may issue debt through Copeinca, which has better ratings, thereby diluting the value of the Copeinca bond. This was reflected with the drop in the bond when news came out of China Fishery?s bid in March. The bond then later rose in value again, on news of Cermaq?s bid."
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serialain
Member |
12-Aug-2013 14:13
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There are a couple of new articles on Copeinca bonds dropping its rating after the acquisition no Undercurrent news. But this stock is so quiet looks like minimal impact anyway. Can someone post the article here? I ran out of free articles haha thanks! | ||
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stockpicker
Master |
08-Aug-2013 12:03
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In term of market capacity, CF after adding in Copeinca is not bigger than Cermaq, not to mention Marine Harvest which is 3 X larger than Cermaq. Both Cermaq and Marine Harvest are heavily invested in Fish food as well.
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Blanchard
Master |
08-Aug-2013 10:23
Yells: "Winners cry..... Losers smile....." |
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A good idea for China Fish to explore..... to improve the company's brand image..... as China Fish is transforming into a bigger global player. This morning announcement in SGX about a possible delisting of Copeinca: The final results show that the Offeror has received acceptances of the New Offer for a total of 57,476,970 Copeinca Shares. Further, the Offeror has settled the acquisition of 6,295,100 Copeinca Shares from Veramar under the Call Option Agreement. Together with the 5,773,000 Copeinca Shares previously acquired by the Offeror, the Offeror controls 69,545,070 Copeinca Shares, representing approximately 99.07% of the shares and votes in Copeinca. As previously disclosed, this means that the condition for completion of the New Offer set out in section 3.3 (a) (acceptance level) of the New Offer Document has been met.
The terms and remaining conditions (being the conditions of the New Offer other than those previously reported to have been met or waived) of the New Offer are set out in the New Offer Document. In accordance with section 3.3 (Conditions for completion of the New Offer) of the New Offer Document, the Offeror will issue a notification through the Oslo Bors as soon as each of the remaining conditions for completion of the New Offer has been met, waived or failed to be met.
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tchoonw
Master |
08-Aug-2013 05:57
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China fish should change it's name to global fish...then it will move! | ||
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Blanchard
Master |
08-Aug-2013 01:53
Yells: "Winners cry..... Losers smile....." |
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Hi newbie888, perhaps the highlight could be more specific:
IMPROVED EBITDA + EBITDA MARGIN IN 3QFY2013 RESULTS ..... I suppose the results are within the market expectations.....
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newbie888
Veteran |
08-Aug-2013 00:42
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was wondering, how come it states improved 3Q result even when there is a drop in net profit? | ||
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Blanchard
Master |
07-Aug-2013 21:58
Yells: "Winners cry..... Losers smile....." |
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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. |
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kewe81
Member |
07-Aug-2013 16:55
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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. | ||
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stockpicker
Master |
07-Aug-2013 07:03
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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. |
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livelife
Member |
06-Aug-2013 23:25
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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. | ||
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stockpicker
Master |
06-Aug-2013 08:08
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Yes and no.. the minority investors can always be swallowed..
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livelife
Member |
05-Aug-2013 22:36
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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 ? | ||
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