Post Reply
41-60 of 72
Food Empire a strong ' buy' for RHB on expectations of an exceptional FY2021
RHB&rsquo s small cap asean research team reckons that Food Empire is a steal.
&ldquo At a market valuation of 10x FY21F P/E, Food Empire is one of the cheapest consumer staples stocks,&rdquo explains analyst Jarick Seet in a Feb 8 note.
He believes the counter could even be a candidate for privatisation, given its undervalued position.
By comparison, the food manufacturer&rsquo s peers are trading at 20 &ndash 30x P/E, says Seet who is maintaining a strong &lsquo buy&rsquo call on the counter but at a revised target price of $1.27.
This is up 47 cents from his previous 80 cent call and is believed to be give a 44% upside from its 88 cent close on Feb 5.
&ldquo The worst is over,&rdquo explains Seet. &ldquo Due to Covid-19 and mass distribution of vaccines, we expect demand for Food Empire&rsquo s products to grow,&rdquo he adds.
This is unlike FY2020 when the food manufacturer&rsquo s sales had taken a hit for almost two months after strict lockdowns were imposed across the markets it operates in.
However, Seet notes that the management has &ldquo learnt to solve these problems and does not expect such matters to be repeated&rdquo .
While FY2020 revenue had inched down y-o-y across the markets, he observes that they have &ldquo improved robustly&rdquo on q-o-q basis, since 2QFY2020 ended June. Excluding foreign exchange costs, he says that the company would have recorded an impressive earnings growth of 87% q-o-q.
Seet is anticipating resilient demand for Food Empire&rsquo s products in its last quartered ended in December as well as in FY2021.
He is expecting its recurring PATMI (profit after taxes minus interest) to edge up by 10%, 20% and 5% between FY2020 to FY2022.
Seet is also looking at the company maintaining its FY2020 final and special dividend per share of 2 cents, which will translate to an FY2020 yield of 2.6%.
These estimates were arrived at after applying a discount to account for the fluctuation in the value of the Russian Rubble (RUB) which had increased at the end of November 2020. Seet believes this can benefit the group&rsquo s numbers, even though it can negate the effect by adjusting its selling prices.
The way he sees it, the key risks to this is strict lockdowns causing operational disruptions and a sharp depreciation in the RUB and currencies of other countries it has operations in.
RHB&rsquo s small cap asean research team reckons that Food Empire is a steal.
&ldquo At a market valuation of 10x FY21F P/E, Food Empire is one of the cheapest consumer staples stocks,&rdquo explains analyst Jarick Seet in a Feb 8 note.
He believes the counter could even be a candidate for privatisation, given its undervalued position.
By comparison, the food manufacturer&rsquo s peers are trading at 20 &ndash 30x P/E, says Seet who is maintaining a strong &lsquo buy&rsquo call on the counter but at a revised target price of $1.27.
This is up 47 cents from his previous 80 cent call and is believed to be give a 44% upside from its 88 cent close on Feb 5.
&ldquo The worst is over,&rdquo explains Seet. &ldquo Due to Covid-19 and mass distribution of vaccines, we expect demand for Food Empire&rsquo s products to grow,&rdquo he adds.
This is unlike FY2020 when the food manufacturer&rsquo s sales had taken a hit for almost two months after strict lockdowns were imposed across the markets it operates in.
However, Seet notes that the management has &ldquo learnt to solve these problems and does not expect such matters to be repeated&rdquo .
While FY2020 revenue had inched down y-o-y across the markets, he observes that they have &ldquo improved robustly&rdquo on q-o-q basis, since 2QFY2020 ended June. Excluding foreign exchange costs, he says that the company would have recorded an impressive earnings growth of 87% q-o-q.
Seet is anticipating resilient demand for Food Empire&rsquo s products in its last quartered ended in December as well as in FY2021.
He is expecting its recurring PATMI (profit after taxes minus interest) to edge up by 10%, 20% and 5% between FY2020 to FY2022.
Seet is also looking at the company maintaining its FY2020 final and special dividend per share of 2 cents, which will translate to an FY2020 yield of 2.6%.
These estimates were arrived at after applying a discount to account for the fluctuation in the value of the Russian Rubble (RUB) which had increased at the end of November 2020. Seet believes this can benefit the group&rsquo s numbers, even though it can negate the effect by adjusting its selling prices.
The way he sees it, the key risks to this is strict lockdowns causing operational disruptions and a sharp depreciation in the RUB and currencies of other countries it has operations in.
Wow....day high $0.96.... Hopefully can see a $1.00 soon
RHB on Monday said it remains bullish on Food Empire Holdings and reiterated its " strong buy call" .
The research team also raised its target price to S$1.27 from S$0.80, pegged to a higher price to earnings (P/E) ratio of 15 times for its FY2021 forecast.
The research team also raised its target price to S$1.27 from S$0.80, pegged to a higher price to earnings (P/E) ratio of 15 times for its FY2021 forecast.
Announcement soon
WBdisciple ( Date: 03-Feb-2021 23:49) Posted:
|
Company responded: https://links.sgx.com/FileOpen/FEH%20Ann%20-%20Response%20to%20unusual%20trading%20activity.ashx?App=Announcement& FileID=647223
- The Company is not aware of any information not previously announced concerning the Company, its subsidiaries or associated companies which might explain the trading today.
- The Company is not aware of any possible explanation for the trading.
- The Company is not aware of any information not previously announced concerning the Company, its subsidiaries or associated companies which might explain the trading today.
- The Company is not aware of any possible explanation for the trading.
If no news from company, maybe SGX RegCo will investigate who place the 500k Bid at 88 during closing.
These days they siao on a bit (just ...... a bit more only).
These days they siao on a bit (just ...... a bit more only).
nea03177 ( Date: 03-Feb-2021 17:13) Posted:
|
Kena SGX query. Wait for their response
WBdisciple ( Date: 03-Feb-2021 16:34) Posted:
|
Tmr will close higher than $1
jlong0005 ( Date: 03-Feb-2021 17:09) Posted:
|
Fantastic move. Hope continue tomorrow to $1.
:)
Food Empire is a good, thriving business as mentioned at the start of the thread...will not be surprised if they get a privatisation offer.
U offer?
Sgvale ( Date: 03-Feb-2021 16:25) Posted:
|
Didnt see any announcement on the offer...
pls do your own DD and not rely on hearsay...
pls do your own DD and not rely on hearsay...
Privatise offer $1
Time to go further up after eliminating week players
Something brewing at FOOD EMPIRE?
https://www.nextinsight.net/story-archive-mainmenu-60/944-2021/13984-food-empire-time-for-re-rating-says-uobkh
Target price by UOB KH $0.95
Target price by UOB KH $0.95
SmallSmall ( Date: 03-Feb-2021 11:47) Posted:
|
Breakout today.......
Company continuing share buyback...just bought back 250,000 on 21 Jan 2021.
Exited here to focus on others.
Thanks guys.
Thanks guys.