Shares in China Fishery Group Ltd and related
company Pacific Andes Resources Development Ltd fell
after both companies posted weaker-than-expected quarterly
China Fishery, which is part-owned by Pacific Andes
Resources, fell 13 percent to S$0.595, while Pacific Andes
dropped 8 percent to S$0.137. China Fishery has plunged nearly
35 percent since the start of the year while Pacific Andes has
fallen 21.5 percent.
China Fishery posted a fourth-quarter net loss of $15
million compared with a profit of $0.8 million a year ago.
Pacific Andes Resources made a net profit of HK$627.7 million
for the year ended September, a slight increase from HK$622.8
million last year.
DMG & Partners downgraded China Fishery to 'neutral' from
'buy' and cut its target price to S$0.65 from S$1.00, citing
disappointing fourth-quarter results due to poor performance in
its fleet operations.
Going forward, the brokerage expects China Fishery's shares
to be weighed by poor earnings visibility from its fleet and
Peru fishmeal business. It lowered its 2013 earnings estimates
for China Fishery by 46 percent.
OCBC Investment Research downgraded Pacific Andes Resources
Development, citing earnings that were below expectations in the
fourth quarter, due to poor results at China Fishery.
Average selling price also fell 3 percent, leading to a
sharp decline in operating margins, which dropped to 6.4 percent
in the fourth quarter, compared with 10.2 percent a year ago.
"The key challenge is the lower activity in the South
Pacific, which is unlikely to pick up any time soon," said OCBC,
adding that a cut in fishing quota in Peru for the upcoming
fishing season will also hurt both companies.
1322 (0522 GMT)
(Reporting by Charmian Kok in Singapore; Editing by Anupama
9:55 STOCKS NEWS SINGAPORE-OCBC cuts Keppel target price
OCBC Investment Research cut its target price for rigbuilder
Keppel Corp Ltd to S$12.49 from S$13.34 and kept its
'buy' rating, citing lower operating margins in the offshore and
marine segment as well as lesser property earnings.
By 0146 GMT, Keppel shares were flat at S$10.50, and have
jumped 12.9 percent since the start of the year, compared with a
13.8 percent rise in the Straits Times Index.
After securing S$8.8 billion of orders in the first nine
months of the year, Keppel's net order book was S$13.1 billion,
with deliveries extending to 2019, OCBC said.
"Looking ahead, we are expecting new order wins of about S$5
billion in 2013 from the Caspian Sea, West Africa, Brazil and
other regions," the brokerage noted.
It said Keppel has also started to improve the competencies
and productivity of its regional yards to meet heavier workload
requirements, which will allow more work to be outsourced to
0947 (0147 GMT)