Post Reply
381-400 of 1089
CGS-CIMB starts coverage on Food Empire at &lsquo add&rsquo with S$1.69 target
CGS-CIMB has started coverage on Food Empire with an &ldquo add&rdquo rating, which is premised on the food and beverage manufacturer&rsquo s growth and dividend prospects, as well as cheap valuations.
Its S$1.69 price target implies an 11.2 times price-to-earnings ratio based on FY2025 estimates, representing one standard deviation above the stock&rsquo s five-year average of 8.2 times.
The research house forecasts an earnings per share compound annual growth rate of 7 per cent from FY2022 to FY2025, and a dividend yield of 3.9 per cent over FY2023 to FY2025.
In an initiation report on Tuesday (Oct 3), CGS-CIMB analysts highlighted Food Empire as an &ldquo undervalued consumer staple company&rdquo that is trading significantly below its peer average.
&ldquo In our view, this is due to concerns over its revenue exposure to Russia and Ukraine, which has been in an armed conflict since February 2022. However, as 3-in-1 beverages are consumer staples and are priced for the mass market, the major fundamental impact on Food Empire has been foreign exchange rate movements.&rdquo
Highlighting Food Empire as a market leader in Russia, the analysts see room for the group to grow its business further in Vietnam and possibly expand into nearby markets such as Cambodia.
They also like the stock for its recent diversification into the food ingredients business, which they observed to have produced cost savings for the group, and in the process, improved its profit margins. Shareholders of Food Empire further stand to benefit from the group&rsquo s excess cash, dividend track record and its management&rsquo s continued share buybacks, added the analysts.
This comes especially as Food Empire nears the completion of its non-dairy creamer plant expansion in Malaysia to mark the end of its capital expenditure cycle, with the group in a net cash and positive free cash flow position as at end-June 2023.
Despite the possibility of a new plant being built in Kazakhstan, the analysts think the resultant capex would not affect the group&rsquo s ability to share excess cash with its shareholders. &ldquo In our view, the Kazakhstan plant, if Food Empire decides to proceed, is likely to be of a manageable magnitude and Food Empire will continue to be able to return excess cash to shareholders via dividends and continued share buybacks.&rdquo
Wow. A super bullish report with unrealistic high TP of 1.69 given by CIMB William. Did he see something we don?t? Ruble has been depreciating by large in recent months and this will definitely pull down its earnings. Or did William see that Food Empire could completely mitigate such forex loss? Well. To be seen in its Q3 result. I have no position right now since I ride from low 50c to $1 and already exited long ago. Hope he is right though. Cheers.
CGS-CIMB initiate coverage for Food Empire with price target of $1.69
Cheers
Cheers
no strength!
Tracer63 ( Date: 22-Sep-2023 11:25) Posted:
|
Get ready
Journey up to continue
Tracer63 ( Date: 21-Sep-2023 15:07) Posted:
|
Moving
Tgt 1.12
Tracer63 ( Date: 21-Sep-2023 15:04) Posted:
|
Long Food Empire
Price over bought, wait for pullback to enter
CGS-CIMB Research
Trendspotter:
Food Empire Holdings Ltd &ndash Technical Buy
CGS-CIMB Research
Trendspotter:
Food Empire Holdings Ltd &ndash Technical Buy
Technical buy fm KGI
Target price, 1.20, 1.24, 1.30
Stop loss : 0 98
Target price, 1.20, 1.24, 1.30
Stop loss : 0 98
Strong buying @1.08 during matching
Something brewing. ??
Something brewing. ??
perhaps it's a acquired taste.
but there are reviews that it also
taste great by others . maybe these
are the alcoholics. LOL
but there are reviews that it also
taste great by others . maybe these
are the alcoholics. LOL
Secret_Squirrel ( Date: 15-Sep-2023 11:16) Posted:
|
heard that coffee with maotai taste awful. Lol
msksmsks ( Date: 15-Sep-2023 10:05) Posted:
|
Perhaps , Why not add 茅 台 or Vodka to it' s concoction......LOL
A popular coffee drink fm china recently
A popular coffee drink fm china recently
FrancisLim ( Date: 15-Sep-2023 09:59) Posted:
|
Will take a hit from the devaluation of the Russian Ruble.
Russia is still the biggest market for its product. Should add some laxative to the coffee sold to Russia, this may hasten the end of the invasion.
Russia is still the biggest market for its product. Should add some laxative to the coffee sold to Russia, this may hasten the end of the invasion.
UOHKH is also optimistic abt their Vietnam' s expansion
Upgraded their Target price to $1.36
Upgraded their Target price to $1.36
Joelton ( Date: 06-Sep-2023 12:41) Posted:
|
PhillipCapital positive on Food Empire&rsquo s competitive advantage in Vietnam
PhillipCapital analyst Paul Chew is positive on Food Empire&rsquo s F03 -1.87% prospects in Vietnam.
In an unrated report dated Sept 5, Chew noted that the company had built up a market share of about 14% in the country&rsquo s instant coffee market which was worth around US$400 million ($544.2 million).
Food Empire established its Maccoffee brand in Vietnam around a decade ago since the introduction of its flagship Café Pho in 2013.
&ldquo We believe in Food Empire&rsquo s key 3-in-1 brand, Café Pho. The competitive advantage is the brand image as best tasting coffee served with ice (70% of coffee consumption is with ice) and deep penetration into the street shops (or general trade) distribution network,&rdquo Chew writes.
Some of his observations from his trip to Vietnam&rsquo s Ho Chi Minh City in Aug 29 to 30 include brand stickiness within consumers. Consumers in the country also seem to prefer strong-tasting coffee, which Café Pho offers even with ice. Another advantage to Food Empire is Ho Chi Minh City&rsquo s consumers&rsquo preference for instant coffee.
At the same time, Chew notes that the city&rsquo s younger generation prefers tea and consumes their coffee at coffee shops as social drinkers. &ldquo Instant coffee drinkers usually start in their mid-30s,&rdquo he notes. &ldquo To capture this group of customers, frequent taste tests, product display visibility and distribution is critical.&rdquo
In his view, Food Empire&rsquo s growth will stem from three key drivers, which include the organic growth of about 3% to 5% per annum within the instant coffee market. Chew&rsquo s estimates are in line with Vietnam&rsquo s GDP and new coffee consumers. Food Empire is also set to enjoy market share gains from expanding geographically thereby capturing more instant coffee consumers. Finally, the company&rsquo s new products for their local and export markets may capture more consumers where sentiment is currently &ldquo soft&rdquo and consumers are more &ldquo promotion sensitive&rdquo .
Sorry to say no one could tell when is buy and when is sell, one should take charge of its own action and decision. With the open facts available, one could make wise decision after due diligence done. This counter however has hit a close to 3-bagger earlier from its low at 0.41. Ruble depreciation has also reached a multi year high (excluding Russian-Ukraine war period). Cheers.
So is it mean that now ruble are getting weak against USD, meaning sell now?
chiachiawee ( Date: 28-Aug-2023 11:39) Posted:
|