Oceanus

Oceanus: FY12 earnings improved to a loss of Rmb$455.7m, vs a loss of Rmb$1177.1m in the previous year. Live marine product sales improved 138% y/y to Rmb83m, and Group managed to reduce production costs by 32%, primarily from Feed, Utilities and Staff costs. Abalone sales however, declined 96% y/y to Rmb10.8m, due to limited stock. Group stated they discovered a more superior method of farming that uses much less labour and energy than the conventional method of caging which they will begin to implement in phases, starting this year to their farms. On the overall, a penny play which could be looked upon for the longer term due to the improvement in costs control, as well as efforts put in place for the improving sales volumes. NAV/share of Rmb15.72¢ (S$0.0313/share), vs last closing share price of $0.068; Group trades at 1.6x P/B.