Due to ongoing investigations by regulatory authorities and declining profits, share prices of China Fishery has suffered a heavy beating. As at today’s price of $0.051, China Fishery's market valuation is s$187.8 million (US$134 million).
Given that China Fishery holds one of the largest proportion of Peru's anchovy permits (approximately 31% of the country's quota) and that Peru is one of the largest exporter of such fish, the question is asked if Mr. market is pricing China Fishery correctly?
China Fishery business
In recent times, China Fishery has shifted from its contract supply business in the North Atlantic to that of processing Peruvian Fish meal. China Fishery’s main segment is now involved in the catching of anchovy in Peru, processing it and subsequently selling it off as fish meal to fishing farms worldwide. There it is commonly used as fish feed to rear other fishes which are farmed (e.......