DMG Research cuts China Fishery Group (B0Z.SG) to Neutral from Buy, lowers target price to $1.98 from $2.10 on expectations of South Pacific catch underperformance, according to Dow Jones.

DMG cuts FY2010 and FY2011 haul expectations by 53% and 13%, respectively due to delay to start of fishing season and “difficulty in new area of operations (including Peru), further worsened by El Nino.”

The research house is lowering FY2010 net profit forecast by 18% to US$134 million ($184 million), lowers FY2011 net profit forecast by 6% to US$171 million.

Says believes stock is fully valued for now, awaits further details before factoring new acquisitions into estimates.

Share price flat at $1.97.