PARD/ CFG (Pacific Andes Resources Dev & China Fishery Group)

Yr 2009 Posts

Posted: Fri Jul 10, 2009 11:32 am Post subject:
Posted by fishfish
try to estimate the catching volume of Pollock announced in Aug. to see if CFG has a higer quota portion in Okhotsk sea. the average is about 20% of the total quota.

Okhotsk sea
2007=511000
2008=697500
2009=869400
2010=1058400

Baring sea west
2007=619400
2008=555700
2009=418000
2010=418000

USA pollock quota seems cannot increase at Baring sea east as Baring sea west is the same fo 2009 & 2010




posted: Sat Aug 15, 2009 2:44 am Post subject: Pac Andes/CFG....

Posted by qiaofeng

Grand Strategy (GS) In Execution...

PA Group management has shown remarkable biz acumen, timeliness & incisive actions at appropriate junctures in this execution...

Let me try to decipher...

Long term Strategy...
Target sustainable untapped Ocean based resources...
Buy over the existing VOAs which carries the fishing permits & rights plus ITQ when awarded...
Take AP (Alaskan Pollock)....
VOAs 1, 2 & 3 ... totals 17 super trawlers vessels... under prepaid Deferred Charter Hire arrangements
VOAs 4..... another 6 super trawlers vessels... under Variable + Fixed Charter Hires payable yearly & as proportion of Profit..
With this CFG gets 20% of the TAC...as ITQ....
Take Peruvian Fishmeal...
Buy 39 Purse seine fishing vessels & 8 fishmeal processing plants...
Part of the Buy 1 get 1 Offer... they get 5% of the TAC for Peruvian anchovy as their ITQ when the switch from Olympic system occured...
Now target South Paciifc CJM... Hmmn... am I saying too much....
U figure...

Next...
Bring in the typical PA Group efficiency & "towards zero" wastage mantra...
For AP...
U get double frozen hand lay deboned fillet, with 98-99% recovery of the Pollock, I read...
Super trawlers out at sea... that semi process the fish and then double freeze it...
Reefer vessels to refuel them at sea, supply & logistic refrigerated vessels that can transport the deheaded, degutted fish back to port so that the super trawlers can be more efficient & longer at sea, minus the many trips(save fuels) ...
For Peruvian fishmeal...
Cut down the Purse Seine vessels deployed..
reduce the number of fishmeal processing plants, upgrade & restructure the fishmeal processes ... improve the steam drying process, use fresher spaced out anchovies catches to get better quality fishmeal/fishoil...
Maybe even sort anchovies for canning & human consumption for some of these plants...
Make sure that even the heads & tails (25% of the fish mass) be harnessed to reduce wastage..
And U get EBIDTA up at 56.2% 2QFY09, UP 20.2% yoy (vs 36% 2QFY08)...

Next ...
Home in on the efficiency of the super trawlers & fishing vessels, now that the ITQs are in the bag...
Reason ?
Bunkerage costs has been high as % of Cost of Sales, as much as 21.1% in FY2008 for CFG..
Situation
U have 26 trawlers in Russian waters in North Pacific, essentially very busy in 1-2 Qs.... but otherwise relaxed in others...
Actions?
Modify & convert them into catcher vessels for South Pacific operations...
Put one factory vessel amongst the five catcher vessels.... to increase efficiency & reduce wastage out at sea ...
Maybe get another Reefer vessel... & have supply & logistics vessels to reduce time wasted travelling....
So the fishing vessels becomes more efficient as the numbers used at North Pacific is deployed elsewhere.... Of the original 26 trawlers.... if 9 get modified & shifted South... U have just 17 left... i.e 17 doing the work of previous 26...
Of the 17, say the ITQs are spread out over more Qs.. as with current rollovers to 4th Q, then the numbers can go down further to say 14? with longer stays out at sea..?
Hence "Cost of sales" decrease as bunker usage reduces... (12.1% of Sales cf 17% last yr partially due to lower price of bunker)... Repairs, Maintenance, Crew wages, all drops... even the Charter Hire is cut to bare bone ( close to fixed charter 20%) at 20.1%...
And when the ITQ system comes for South Pacific, CFG will be poised for the conversion... 12 converted trawlers from the North, one factory vessel & one Reefer vessel?

Simultaneously...
Increase the supply, logistics, processing & distribution chain Knowhow..
Acquire new competencies, new competitive edges for mkt penetration..
Built the largest high tech FDA standard fillet processing plant in Hongdao..
Pursue MSC ( Marine Stewardship council) certification... for fishery & end to end traceability...
Grab a significant share of the China mkts ( fastest growing)...
Pursue niche Japanese/Korean mkts like AP roe (making use of every part to reduce wastage)..
Pursue African & European mkts...to diversify risks..

But wait... the GFC tsunami hits...!!
So Short term tinkering needs to be done to the strategy...

PAH
Sell lower margins mix.. sell more AP, less fish roe etc... (to keep price at USD 8000/ tonne range for fish roe ?)...
Raise funds via rights to fund working capital...
to underpin the supply & logistic & trading chain...
the lifeblood but always "overlooked" & neglected factor in a trading & SCM biz...
Use it to pay down short term revolving loans..& reduce gearing...


CFG
Inventories of fishmeal hit by GFC price collapse sold to PAH as IPT...
Spread out utilisation of vessels & ITQ over the year...
- instead of flooding Japanese/Korean mkts with expensive roe in a GFC , rollover to the 4th Q...
- similarly with AP, part of the ITQ is rolled over to the 4th Q...
So in the 4th Q... CFG can use less vessels & spread over a longer fishing excursion...
Most of the Capex for South Paciifc looks done... unless there are new acquisitions to the 1 factory ( converted supertanker) & 5 converted trawlers...
Revenues flows start from July...
Strong Operating margins & Operating Cashflows of the Biz model is sufficient to pay down the essentially long term debt funding structure here

My appreciation & grasp of this Grand Strategy is perhaps shallow & sporadic ...
as I do not know the management enuf...& have NOT good, only an asymmetric access to the insider info set...
However, I am beginning to savour their business savvy, more & more...

What can we expect from this GS?
Better improving efficiency, lower wastage, higher quality products leading to higher ASPs, higher margins & lower costs..
This Q results from PAH & CFG testify to the brillant execution to-date... even under extreme stress...
There is much more to come... CJM catch just started in July & continues as we speak.....
Season for CJM ends late Nov, early Dec...

BTW...
Did U guys notice the same date for announcement of PAH/CFG results?
Alignment of the PA Grp to cut waste & reduce inefficiencies is ongoing...







Posted: Mon Nov 16, 2009 7:37 pm Post subject:

Posted by fishfish
qiaofeng,

Have your increase your holding of PARD?
PARD is under-value and will be become normal-value later, sane as PAIH


vessel Lafayette invested US$100 million ,expected to haul in 300,000 tonnes of fish a year.
This is a new fishing method can save fuel 35 tons daily and 300 workers also can be saved. The profit margin of its fishery business could reach 50 percent in five years from 35 percent


早前集團投資約一億美元巨型的加工與捕撈船—拉法葉號，將在近期完成改裝後投入服務，該船全長228米，寬32米，擁有巨大的燃油與潤滑油容量，可以長年在海上作業。 新購加工捕撈船添財源 　拉法葉號配備32個魚艙，利用冷卻至0℃的海水儲存漁獲。同時，該船可容納14,000噸漁獲的冷藏貨艙及232台直立式平板冷凍機，每天可加工處理1,500噸魚。與傳統的拖網加工漁船的模式相比，不但每天節省35噸燃料，亦可大幅減少300名船員，故相信拉法葉號將為集團帶來可觀回報。

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