China Fish

China Fish: 3Q12 results below expectations due to weaker contribution from its fishmeal operations as well as losses from its China Fishery Fleet operations (formerly known as South Pacific operations). Net profit fell 44% yoy to US$21m, on the back of 20$ fall in revenues to US$152.6m. Nevertheless, DBSV expects to see a better 4Q for the group, driven by higher contribution from its fishmeal operations, which had seen a delay in the start of the fishing season (May instead of Apr each yr). Notes the Group currently has 55k of fishmeal/oil inventory and sales revenue or these should be recognized in 4Q. Also notes 4Q tends to be seasonally stronger for its fishing fleet. DBSV notes the counter trades at an undemanding 5.7x FY12e P/E. Revises earnings and cuts TP to $1.15 (from $1.32). But the house keeps its Buy call as this still leaves 43% upside and 6% yield.