Oceanus - eat abalone

Dongdaemun
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14 years 9 months ago #1652 by Dongdaemun

Replied by Dongdaemun on topic Re:Oceanus - eat abalone

Posted by provocateur at www.shareowl.com on Thu Jun 18, 2009 10:34 am

Hi smj 9% interest rate may seem high by Spore standards (which is 7% for SMEs) but is normal for China businesses. Oceanus can easily generate a pre-interest operating margin of 30% to 40% and hence can easily cover the interest. It is also not a very big loan. But I don\'t like the fact that the exercise price of the warrants is only 15 cts. That is half of the current share price and it is not fair to existing shareholders. This is a moderate risk high return stock and it is best to keep exposure to below 10% of a small portfolio and 5% of a big portfolio. But this businesss is truly unique and hard for competitors to catch up with it because they have acquired all the neighbouring farms in the best coastal location in China for rearing abalone. In that location, the currents from the north and south meet and create a dynamic confluence of quality seawater that abalones love. The water temperatures are just ideal over there. This is the Raffles Education of 2002, the start of many years of monopolistic growth. Oceanus is way ahead of its rivals. It specialises in high grade Japanese abalone whereas its rivals are mostly farming Aussie species abalone. Besides China market, the Japan market will be a huge one for packaged frozen abalone and chilled airflown abalone.

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Mel
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14 years 7 months ago - 14 years 7 months ago #1761 by Mel

Replied by Mel on topic Re:Oceanus - eat abalone

sunday times : Sept 20 oi, Oceanus\' restaurant opening in Orchard Central for investors & shareholders to enjoy first hand their investments!

Last edit: 14 years 7 months ago by Mel.

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Mel
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14 years 6 months ago #1788 by Mel

Replied by Mel on topic Re:Oceanus - eat abalone

some love it, some dont. those forumers at Channel News Asia have lots of things to say. the one thing that stands out is that there are crowds at the restaurant, which is good news for Oceanus stock price! check out the CNA forum postings: forum.channelnewsasia.com/viewtopic.php?...95e6e100394b24f768ee

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yoketiong
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14 years 6 months ago #1803 by yoketiong

Replied by yoketiong on topic Re:Oceanus - eat abalone

I liked Oceanus Group Ltd for: 1. Strong Brand Name. The JV with Ah Yat Abalone Group provide Oceanus with immediate access to Ã¢â¬ÅAh YatÃ¢â¬Â brand, which otherwise would have taken many years to build. Oceanus partnership with reputed industry players such as Ah Yat Abalone Group and Skylight Group has enabled the group to leverage on its partnersÃ¢â¬â¢ distribution network, branding and expertise. 2. Exciting growth rate. Oceanus is in the expansion phase of its business life cycle. The group is in early stage of its downstream activities and expects exponential growth over the next few years. Growth will be propelled by expansion and maturing of its abalone population. In addition, I am expecting the downstream businesses to contribute more meaningfully to the groupÃ¢â¬â¢s earnings in the next two years. 3. Strong management team. A visionaries and passionate Chairman (Dr Ng Cher Yew) with a hands-on and hardworking CEO (Mr Yu Dehua) is a great combination in running this big business. 4. Low forward valuation. At $0.35, Oceanus is trading at 4.7x FY2010 earnings estimate (our conservative estimate). Compare to 4.6x WestcombÃ¢â¬â¢s FY2010 earnings estimate and 4.2x OCBC Investment ResearchÃ¢â¬â¢s FY2010 earnings estimate. 5. Market leader. Oceanus is the largest integrated abalone producer in China. It currenltly dominates 15% of ChinaÃ¢â¬â¢s abalone farming market share and aims to lift its market share to 30% by the time it attains steady state in around two yearÃ¢â¬â¢s time when it current batch of hatchlings grow to marketable sizes. 6. Potential spin-off listing of Ah Yat Tian Xia (AYTX) by 2011/2012 to unlock shareholder value. Assume a profit of RMB250m by 2011 and 15xEarnings, AYTX could fetch a market capitalization of RMB4.5bln (after 20% enlarged capital upon listing). OceanusÃ¢â¬â¢ 70% Pre-IPO interest in AYTX would be worth RMB2.625bln or SGD560mln (SGD0.317 per share) upon listing.

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Mel
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14 years 5 months ago #1836 by Mel

Replied by Mel on topic Re:Oceanus - eat abalone

Looking at trend in Q3... it looks like Oceanus will sell more canned abalones in Q4. Will that mean fewer live abalones sold? If it\'s 1 for 1 diversion, the profit margin will be better, cos processed abalone has higher value add. I expect they can better control their margin over a period of time and not be subjected to the spot market for live abalones. CNY coming, maybe canned abalones from Oceanus will be sold in the Little Red Dot - with nice discount for shareholders..... hOping!

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neontet
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14 years 5 months ago #1873 by neontet

Replied by neontet on topic Re:Oceanus - eat abalone

Oceanus now 32 cents. Its TDRs will be listed in Taiwan at much higher price? This will boost its Spore price. U read this SharesInvestment teaser: www.sharesinvestment.com/articles/504880/ When we first featured Oceanus Group (Oceanus) as our cover story in early December last year, its share price was languishing at a low of $0.175. One year on, the Mainboard-listed company has appreciated more than 95%, along with the broader market recovery. Just recently, Oceanus has submitted an application to list Taiwan Depository Receipts (TDRs), representing an aggregate of up to 200 million shares of the company, which could further boost its valuations. Ã¢â¬ÅWe intend to list the TDRs at a premium over the companyÃ¢â¬â¢s prevailing market price in Singapore,Ã¢â¬Â Dr Ng Cher Yew, Executive Chairman of Oceanus, firmly remarked ...

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