WiseVest - China Fishery expands its fleet

Recently listed in SGX, this stock have climbed up on the back of record profits and it is now expanding its fleet of fishing boats. Upon entering the vessel operating agreement (VOA) with Alatir, China Fishery Group (CFG) would expand its operations of super-trawlers in the Pacific Ocean to 14.

The VOA states that China Fishery is entitled to the proceeds of the sales of all the catches harvested by the vessels while Alatir receives a fixed charter hire of US$12,000 per vessel per day as well as a 20% share of the operating profits to be derived by China Fishery. This would generally refer that operating costs of CFG would be expected to increase though fixed assets and depreciation would be kept at its current rate for the FY06.

China Fishery has announced a net profit after tax of US$30.658million in FY05 compared with a net profit of US$17.653 in FY04. This would represent a prudal move by CFG to expand its operations in Asia Pacific.