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*DJ Pacific Andes Resources Target Raised To S$0.42 Vs S$0.32-CIMB
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*DJ Pacific Andes Resources Raised To Outperform Vs Neutral - CIMB
(MORE TO FOLLOW) Dow Jones Newswires
January 21, 2010 02:11 ET (07:11 GMT)
*DJ Pacific Andes Resources Target Raised To S$0.42 Vs S$0.32-CIMB
(END) Dow Jones Newswires
January 21, 2010 02:11 ET (07:11 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc
*DJ Pacific Andes Resources Target Raised To S$0.40 Vs S$0.31-OCBC
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*DJ Pacific Andes Resources Target Raised To S$0.40 Vs S$0.31-OCBC
Pacific Andes Resources
Development
Oslo listing is a positive move
CFG to seek secondary listing on Oslo. Pacific Andes
Resources Development's (PARD) subsidiary China Fishery
Group (CFG) announced yesterday that it is seeking a
secondary listing on the Oslo Bors (the Oslo exchange). This
will be carried out via an offering of new shares. The group
said that it intends to target both retail and institutional
investors in Norway.
Higher valuation on the Oslo market. One of the key
rationales for the secondary listing is that the Oslo exchange
is the listing venue for 17 listed seafood/fishing companies.
As a result, there is better investors awareness and the
possibility of higher valuation multiples (or an average of about
10-13x for seafood companies listed there). With better
investors' awareness, there is also the possibility of tapping
into this pool of ready investors who are familiar with seafood/
fishing companies. This dual listing, if approved, will also allow
the stocks to be traded at different time zones in addition to
providing another channel for additional equity fund raising for
future expansion.
Prospects remain healthy. CFG's vessels are ready to
commence fishing in Feb. Management expects this year to
be "the year of significant growth". We believe this will come
from higher utilisation of its fishing assets as some have been
re-deployed to the South Pacific to enhance its total group
catch volume. In addition, worldwide consumption of seafood
remains good due to the preference for healthier food
alternatives.
Positive move; maintain BUY and raised fair value to
S$0.40. This move, if approved, is positive as it offers the
possibility of higher valuation from a market that is more familiar
with the dynamics and the demand trends of the seafood/
fishing industry. CFG has moved up about 37% from three
weeks ago versus only 18% for PAH even though it is the
majority shareholder. In addition, the sum-of-parts calculation
shows that PARD's stake in CFG is now worth more than its
own market capitalisation. This is not justifiable, and there is
a possibility for this gap to narrow as we believe a re-rating
should also be accorded to PARD. We have upped our valuation
to 8x earnings (from 6x) to be in line with other listed F&B/
consumer stocks although most have flat or negative growth
versus growth of more than 30% for PARD in FY10. We are
retaining our BUY rating and raising our fair value estimate to
S$0.40 (up from S$0.31).
Life's like a box of chocs, you'll never know what you gonna get. I didnt know, but when you walked into my life, i just knew i'd gotten the sweetest box...
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23-Jan 2010 Saturday
10:28 PM (5226 days ago)
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