“Booming high fish prices” are driving earnings and profits at leading Chinese aquafeed company Guangdong Haid, according to two leading analysts at the sector.
The analysts, Wu Li and Liu Zhe Ming from Tian Feng Securities, have put a “buy” recommendation on Haid, based on aquaculture players buying more high-grade feed due to higher seafood prices and a shift to premium species. Haid is also benefiting from a rebound in China’s poultry meat sector, according to Wu and Liu.
China’s enactment of a longer and more strictly enforced fishing moratorium on its own waters has pushed local prices for staple species like ribbonfish and pomfret by as much as 20 percent year-on-year in May. Tian Feng is projecting net profit at Haid will be CNY 1.57 billion (USD 248 million, EUR 210 million) and CNY 1.96 billion (USD 306 million, EUR 253 million) in 2018 and 2019 respectively, an increase of 30.66 percent and 24.54 percent year-on-year.
“The company's core competitiveness is outstanding,” the Tian Feng report noted.
