" Food Empire& rsquo s planned listing in Hong Kong could leave some upside for new investors. Over the past decade, the non-alcoholic beverage sector in Hong Kong has fetched a premium of 105% to the Hang Seng Index (HSI) versus the 72% premium today. Specifically, Hong Kong& rsquo s non-alcoholic beverage sector trades at a 12-month forward P/E of 13.8 times versus the 10-year average of 22 times.

 

In contrast, Food Empire trades at a forward P/E of just over 8 times and is at a discount to its global peers.  The international beverage sector trades at a P/E range of 17.3 times to 30 times with a 10-year average of 23.7 times, while the international coffee segment trades at a P/E range of 18.1 times to 25.9 times with a 10-year average of 22 times. 

 

Tan acknowledges that the market is not currently at its peak,  but he encourages investors to view the potential Hong Kong listing as a growth opportunity over the short to medium term, anticipating market recovery.

 

 

While there are no definite plans to share, Tan is not ruling out the possibility of forming joint ventures to penetrate this new market. He understands that entering this new market will entail substantial costs, but he sees it as a necessary and worthwhile commitment. & ldquo Sitting here and waiting for things to happen will not do us justice. I think we should do something rather than do nothing. There will be some costs, but we believe greater benefits will come out, much greater than the cost. We can be in better shape than we were before.& rdquo"