Sea Harvest | Plain sailing
Sea Harvest (SHG) is a Cape Hake fishing company, with its main operations in South Africa and Australia. Cape Hake catch rates and size are improving. SHG earnings will benefit from higher volumes. Larger fish are conducive to premium priced export markets. SHG has more freezer vessels in its fleet which produce products for the export markets. We therefore expect SHG margins to rise as the company increases its export sales mix. The company is investing into factory efficiencies, to improve yields and margins. SHG is past its peak capex cycle, and we forecast a significant increase in free cash flow over the next three years. SHG has announced the acquisition of the fishing business of Viking fishing and 51% of Viking aquaculture. The purchase price is c.R884.7m and is to be settled through a combination of cash on hand, bank facilities and the issue of Sea Harvest ordinary shares. Viking Fishing will give SHG scale in hake production, diversification into other species and add high value aquaculture revenue streams.Sea Harvest Group Limited, formerly Sea Harvest Holdings Proprietary Limited, is engaged in fishing of Cape hake and Shark Bay prawns; processing of the catch into frozen and chilled seafood, and the marketing of these products, locally and internationally in a seafood market. It operates in two segments: South African Operations and International Operations. The South African Segment comprises fishing operations within South Africa relating to fishing of Cape hake and by-catch species, the processing of the catch into frozen and chilled seafood products and the marketing and distribution of these products locally and across 22 international markets. The International Segment comprises the operations of Mareterram. The main operations of Mareterram comprises the trawling, processing, marketing and distribution of Shark Bay prawns, scallops and crabs, and a foodservice sales and distribution business, which distributes a basket of products into the Australian food service market.
Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.
Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.
Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.