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Stock Brokers Expect Alliance Tuna To Post Double-Digit Growth

Two local stock brokerage firms expect Alliance Tuna International Inc. (ATII) will most likely maintain its double-digit growth for 2009 following the realization of revenues from its capacity expansion.

PCCI Securities Brokers Corporation said in a company report that revenue growth is expected to be around 21 to 22 percent with revenues reaching the $62 million-mark.

Net income will improve by 28 percent to around $4.1 million following the extension of ATII's tax incentives until 2010 and lower financing cost.

PCCI said ATII's joint venture with Prime Foods NZ will likely have full impact in 2010. The construction of the salmon processing plant in the second half of 2009 is estimated to increase its working capacity to 390 metric tons next year.

This will further increase revenues by 39 to 40 percent to $88 million. Net income for 2010 will likely grow at a slower rate of 18 to 19 percent on higher production and operating costs and payment of taxes assuming ATII is not able to renew its tax incentives.

For its part, Angping Securities said in a separate study that, with net sales forecast to hit $66.5 million this year, ATII's year-on- year growth for 2009 is 29 percent based on net sales of $51.6 million in 2008.

ATII expects to post an even better growth rate of 42 percent next year with net sales of $94.6 million after consolidating the full effects of its current expansion activities.

"These figures put ATII on course for breaking $100 million a year in gross revenues by 2010 at the latest assuming they continue their rate of growth. It should also be noted that our projections does not yet include possible revenues from planned acquisitions from 2010 and beyond," Angping Securities said.

ATII has set up an 80-20 joint venture for a tuna canning and can manufacturing facility in Bitung, Sulawesi called PT International Alliance Food Indonesia. Bitung can produce 60 metric tons per day of canned tuna, increasing ATII's tuna output capacity by nearly 40 percent.

The firm aims to use its Indonesian operation as a platform to increase sales to the Middle East, maximizing the country's strong cultural and trade ties with that region and the company's existing Halal accreditation.