SA fishing sector initiation – Licence to Fish

Our initiation report on OCE and SHG considers how their different mix of fishing assets could be impacted by the prevailing economic conditions. Post-lockdown retail spending may favour value-for-money offerings such as canned pilchards which positions OCE at an advantage to SHG. Red tape has frustrated the FRAP 2021, in our view, uncertainty amongst HDST licence holders may persist for longer. OCE’s fishmeal and fish oil business may be volatile but our market overview suggests that the sector’s prospects are intact.