HUO 0.00% $3.71 huon aquaculture group limited

HUO upside potential, page-3

  1. 611 Posts.
    lightbulb Created with Sketch. 94
    Even at 25,000t harvest, I still can't justify the current price for HUO.

    Assuming:
    1. 25,000t harvest
    2. Raw material cost being 55% of sales
    3. $15/kg price
    4. Similar costs for the other expenses

    EBIT would be around the $25-27m mark.

    At around a 400m market cap, that would be a P/EBIT multiple of 15-16x. This is also expensive considering their ROE is around 10%.

    IMO, the biggest factor that will improve their EBIT is the raw material cost as a % of their sales which should be around the 50% mark. But since their IPO, that % has been at the 57% mark.

    I think the only thing holding this stock up is their biological assets and the capex that went into Whale Point.
 
watchlist Created with Sketch. Add HUO (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.