Oceanus Group - UOB Kay Hian 2021-10-19: Gaining Traction In The Food Security Space Which Offers Huge Opportunities

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OCEANUS GROUP LIMITED (SGX:579)

Oceanus Group - Gaining Traction In The Food Security Space Which Offers Huge Opportunities

• The recent establishment of Sino Food, a new subsidiary appointed as China Resources’ frozen food distributor, marks an important milestone for Oceanus as it enhances the latter’s presence in the food security space.
• Oceanus’s track record in the food industry, from farming to distribution, puts it in a good position to win more businesses in the food security space, which has become a key focus of many countries due to the recent disruptions caused by COVID-19 to the food supply chain.

Sino Food’s co-operation with a Fortune Global 500 companies marks an important milestone in the food security space.

• On 23 Aug 21, Oceanus Group (SGX:579) established a new subsidiary, Sino Food Group Pte Ltd (Sino Food) to engage in global food supply chain management and strengthen food security within the region.
• Sino Food has been appointed as an approved distributor of China Resources Wufeng Co. Ltd., a food enterprise group under China Resources, a Fortune Global 500 company and a state-owned enterprise. Sino Food is expected to accelerate Oceanus’s growth in the food distribution industry in China, which is an important target market in Asia as it offers immense potential and growth opportunities in the food supply chain sector. Oceanus will work towards boosting the global food supply chain and supplement food security in Asia.

Oceanus is well-positioned to tap on the huge opportunities in the food security business.

• Ensuring a robust food security system has become a key focus of many stockpiling of food supply inventory and trading of food supply globally.

Setting up a new digital exchange and further digitalisation of distribution business.

• Oceanus’s distribution pillar is in the Media Global (OMG) to consolidate its multimedia brands. We think this will greatly enhance Oceanus’s distribution pillar.

Near-term key catalysts for Oceanus

• Exponential revenue and earnings distribution business. This could help to scale up the revenue of Oceanus’s food distribution business.
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Singapore Research UOB Kay Hian Research | https://research.uobkayhian.com/ 2021-10-19

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