Gemini Sea Food, a world class processed shrimp exporting company last week got huge market response at Dhaka Stock Exchange not for its performance but for its small size of paid up capital.
Company’s has only 6.1 million securities which allure gamblers and manipulators to play with buying and selling, experts said. The share price of the company fluctuated between Tk 276.60 and Tk 638.90 in only a few months gap.
“The price fluctuation of such range is absolutely abnormal and it has mysterious causes other than the fact that the company is doing good,” Zahedul Islam, a capital market expert told Business Mirror.
Last year the company spotted its footmark at Japan and South Korean market and had completed different types of certification.
“Gemini is searching for alternative markets, including Japan & South Korea. Since there is a growing number of demands of Bangladeshi chilled fish and frozen white fish, we planned to export chilled fish & frozen white fish.
To grab this uprising market, we have taken all necessary initiatives, including established a chilled fish packaging center, and taken all regulatory permissions. We are also exploring our opportunities to export frozen white fish,” Amenah Ahmed, chairman of the company board said at its latest annual report.
This year we got permission to export 50 metric tons of Hilsha fish to India, she added.
The company also got license from the government to Government already given permission to 11 organizations to cultivate Vannamei on a pilot project basis and GSFL is one of them. “After making this project successful, our plan is to become one of the pioneers of commercial Vannamei production in Bangladesh”
The Company has achieved an export turnover of Tk. 72.65 crore during the year ended 30th June 2022. Gross Profit of Tk. 16.40 crore has been earned during the current year as against of Tk. 7.52 crore of last year.
Net Profit (after tax) earned during the current year was 5.86 crore as compared to last year’s net profit (after tax) of Tk. 0.34 crore. Increased sales revenue, decreasing operating expenses and cheaper financing options contributed to the increase in the net profit for the organization
Gemini Sea Food Limited had some bad reputation as it did not transferred any money to the trust formed in favor of this fund after the 2014-15 accounting year, despite showing regular payments to the Workers’ Profit Participation Fund (WPPF) as expenses in its financial report.
The company also laid off a huge numbers of its workers ad suspended some of its operations during Covid period.
Earlier in last year share price rose abnormally for which The Bangladesh Securities and Exchange Commission (BSEC) formed a two-member inquiry committee on Tuesday to investigate the unusual increase in the price of Gemini Sea Food Limited shares.
The company’s share price rose 51% in 14 days, and stood at Tk593.4 on 19 October. On Tuesday, its shares closed at Tk497.5 per share at the Dhaka Stock Exchange (DSE).
In February this year, Gemini Sea Food submitted a plan to expand its business to the BSEC. It wanted to produce frozen foods such as chicken nuggets, sausages, meatballs, fish-balls, shrimp-balls, fish fingers, parathas, French fries, cutlets, and other edibles to penetrate the local market.
Gemini Sea Food is the pioneer in exporting certified organic shrimp from Bangladesh to EU retailers. It processes, packages, and exports quality frozen raw shrimp, cooked shrimp, and whitefish. The firm got listed on the DSE in 1985.
It exports its products to the US, UK, Germany, Denmark, the Netherlands, Belgium, and Russia.