The Zhanjiang Guolian Aquatic Group is set for a net profit of CNY 500 million (USD 72.8 million, EUR 68.8 million) in 2018, compared to CNY 100 million (USD 4.6 million, EUR 13.8 million) in 2016 and CNY 210 million (USD 30.6 million, EUR 28.9 million) in 2017. That’s according to the projections of Zhao Shang Securities in Shanghai, which has published a bullish research note on the firm.
Guolian’s integrated business model and the firm’s exposure to China’s growing convenience food sector – both fast food and ready meals – are also reasons which Zhao Shang cites for its optimism in the report. Investors will be cheered if the projections are realized: earnings per share will go from CNY 0.26 in 2017 to CNY 0.64, according to Zhao Shang’s projections.
