Oceanus: Daiwa upgrades to Buy from Hold, raises its target price to $0.375 from $0.315; citing that the key issues that led to the company's disappointing share-price & financial performance in 2010 (a lack of new tanks, above-normal abalone mortality & operating losses at its restaurant business) are now behind it. House revises up its 2012 net profit forecast by 16.1% due to two potential tax benefits granted by the PRC.
Adds it is now an opportune time to invest in Oceanus as the company should benefit financially in 2011 from: 1) more tank capacity from the additional land that it acquired at end 2010, 2) minimising losses at the restaurant division, & 3) potential increases in abalone prices from an industry-wide supply shortage.
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