reports
- Jiten Bechoo
- Pratish Soni
Sea Harvest | A larger tackle box
Over the past three years, Sea Harvest has invested R592m to diversify itself from fishing regulation risk in SA. In our view, Ladismith Cheese is accretive to results and indicates that the company have paid appropriate prices for its acquisitions. The existing fishing business will deliver efficiency growth from higher catch rates and factory automation in FY ‘19. However, an acceleration of fishing profit growth depends on an increase in the allowable catch, which we do not expect until ...
4 directors sold
Four Directors at Sea Harvest Group Limited sold 1,303,535 shares at 10.999ZAR. The significance rating of the trade was 83/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two...
- Jiten Bechoo
- Pratish Soni
Sea Harvest | Setting Sail
In this report we assess Sea Harvest's (SHG) recent investments. We find the acquisitions to be earnings accretive to date. The acquisitions are a welcomed diversification from the vagaries of the fishing cycle. The timing of the acquisitions has led to favourable pricing, in our view. By our estimates, the acquisitions raise our three-year EBIT CAGR estimate from 18.4% to 32.4%. However, the share has de-rated from a 1.1x PE relative in September to a 0.8x PE relative on the offer to purchase L...
- Jiten Bechoo
- Pratish Soni
Sea Harvest | Abalone farm and cheese factory visit
Avior recently hosted Sea Harvest and Brimstone on a site visit to Sea Harvest's aquaculture and cheese operations in Buffeljags and Ladismith respectively. We also visited one of Ladismith Cheese's largest milk suppliers. The two companies are recent acquisitions of Sea Harvest and serve to diversify its operations. The operations are sophisticated and well-run operations. We believe both businesses should prove to be earnings and value accretive to Sea Harvest over time.
- Jiten Bechoo
Sea Harvest | A good catch
Sea Harvest (SHG) grew interim headline earnings by 9% yoy (excluding once-offs). Following the listing, total shares in issue rose 23%, causing a 14% yoy decline of HEPS (excluding once-offs). Cape Hake catch rates and sizes are improving. SHG earnings will benefit from higher volumes. Larger fish are conducive to premium priced export markets. SHG has a high ratio of freezer vessels in its fleet which produce products for the export markets. We therefore expect SHG margins to rise as the...
- Jiten Bechoo
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 impro...
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