Pacific Andes

Pacific Andes: Grp posted a 43% YoY drop in 3QFY12 net earnings to HK$146.1m, which was in line with expectations. Fishery & Fish Supply accounted for about 47% of revenue with the balance from the SCM business. OCBC keeping FY12 estimates intact. While fish consumption is fairly defensive and unlikely to be affected by the global economic slowdown, pricing is likely to soften due to uncertain economic outlook and market conditions. House retaining Buy with $0.178 TP. Yield is still healthy at more than 7%.