Continuing growth in Chinese seafood prices and an increasingly rapid shift to higher value species like perch and crayfish is driving a strong outlook for key feed supplier Guangdong Haid.
The national shrimp price index (compiled by Wind, a private data vendor) stood at 170.22 in early May, up 9.86 points on the previous week. That’s an average CNY 35.2 (USD , EUR ) per 500g for 40 pieces of shrimp, notes analyst Gong Yan Hai who follows Haid at leading Chinese brokerage Shen Wan Hong Yuan Securities.
ShenWan Hong Yuan projects Haid net profits will grow from CNY 1.19 billion (USD , EUR ) in 2017 to CNY 1.49 billion (USD 219 million, EUR 192 million) in 2018 and on to CNY 1.84 billion (USD 268 million, EUR 234 million) in 2019. Earnings per share, meanwhile, will nearly double to CNY 1.2 (USD 0.17, EUR 0.15) in the same time frame, Gong said. He explained that he was so positive on the company due to its exposure to feed, seed, and antibiotics segments of the aquaculture industry.
