Pac Andes

Pac Andes: Results in-line with expectations. FY2011 rev at HK$9.7b +30.7% with net profit at $622.8m -19.4% yoy. This included an early redemption of senior notes, if excluded, net profit would have been approx HK$690.3m. Decrease in net profit was due to higher selling, admin and interest expenses.

Revenue from frozen fish accounted for 45% share of rev attributed to demand from China and growth in Africa. Rev from fishing made up the remaining 55% driven by stronger contributions from South Pacific fleet and Peruvian fishmeal ops offset partly by North Pacific operations.

Of note co has penetrated the West African mkt where in FY2010 made up only 3.8% of rev and in FY2011 currently forms 18.0% of revenue.

Net gearing from co is currently approx 43.9% higher than prev year 32.4%

Co has a dividend policy to distribute 1/3 of its profits and a dividend of 1.08c has been declared. Pac Andes is currently trading at 5.9x P/E.