Oceanus Group (579.SG) still consolidating in $0.305–0.32 band, in place since beginning July, unmoved by abalone farmer’s latest venture into lobster business via tie-up with Australia’s Lobster Harvest, says Dow Jones. Shares –1.6% at $0.305.

Both companies seeking to start lobster production operation in China, with Oceanus investing A$3 million ($3.6 million) for 6.5% stake in Lobster Harvest, 2 equal JV companies with Australian partner, leveraging on latter’s R&D capabilities.

Investment returns not expected in near term as establishment of lobster breeding operations will take several years, although Oceanus hopeful first-mover advantage in China will pay off.

“It will be a great boon to Oceanus, which will be able to diversify its exotic seafood product offerings. Though we view this with optimism, we think investors should exercise caution as the learning curve of breeding lobsters on a massive scale is expected to be steep,” says DMG, which has Buy call with $0.43 target.