China Fishery

Fishmeal prices have recovered to around US$900/tonne on demand from rising live-pig stock and a switch back to fishmeal after a relentless rise in soymeal prices. Meanwhile, the Russian authorities have announced an increase in the Total Allowable Catch for Alaskan Pollock to 1.46m tonnes, and doubled the renewable quota share term to 10 years beginning 2008, potentially boosting long-term trawling revenues and reducing the risk of purchasing quota rights for China Fishery. We have adjusted our FY07-09 EPS estimates by - 2.5% to 1.4% to take into account new fishmeal prices and trawling revenues. Our target price remains S$3.30, based on 14.0x CY09 P/E. Maintain Outperform.