Super Group   

Super Coffee

Erm, basis?

9hly99      ( Date: 28-Mar-2014 10:56) Posted: M& A soon....a gem to be target for takeover.......

 

M& A soon....a gem to be target for takeover.......

 

Supergroup share price finally rebounded. I think buying interest coming back.

 

 

 

NOTICE OF BOOKS CLOSURE DATE FOR BONUS ISSUE

  Ex : 26 May

NOTICE IS HEREBY GIVEN that, subject to the approval of Shareholders being obtained at the forthcoming extraordinary general meeting of the Company for the Proposed Bonus Issue, the Share Transfer Books and Register of Members of the Company will be closed on 29 May 2014 and 30 May 2014 (both dates inclusive) for the preparation of the Proposed Bonus Issue.



Shareholders whose ordinary shares in the capital of the Company (" Shares" ) are deposited with the Central Depository (Pte) Ltd (" CDP" ) and whose securities accounts with CDP are credited with Shares, will be allotted Bonus Shares on the basis of the number of Shares standing to the credit of their CDP securities accounts as at 5.00 p.m. on 28 May 2014.

  Duly completed and stamped transfers in respect of Shares not registered in the name of CDP together with all relevant documents of title thereto received by the Company?s Share Registrar, Boardroom Corporate & Advisory Services Pte. Ltd. at 50 Raffles Place #32-01 Singapore Land Tower, Singapore 048623 up to 5.00 p.m. on 28 May 2014 will be registered in accordance with the Articles of Association of the Company to determine Shareholders? entitlements to the Bonus Shares under the Proposed Bonus Issue.

 

 

 

APPROVAL IN-PRINCIPLE FOR PROPOSED BONUS ISSUE

 

 

 

2. RECEIPT OF IN-PRINCIPLE APPROVAL FROM SGX-ST

 

 

 

Further to the Bonus Issue Announcement, the Board is pleased to announce that the SGXST

 

 

has today given its in-principle approval (" AIP" ) for the Proposed Bonus Issue and the

 

 

 

listing of and quotation for an aggregate of 557,738,980 Bonus Shares (including 152,000

 

Bonus Shares to be issued in respect of the treasury Shares) on the basis of one (1) Bonus

 

Share for every one (1) existing ordinary share in the capital of the Company held by

 

Shareholders.

 

The Bonus Shares will be issued credited as fully paid at no cost to entitled Shareholders

 

without capitalisation of the Company's reserves. The Bonus Shares will, on allotment and

 

 

issue, rank pari passu in all respects with the existing issued Shares and with each other,

 

 

 

except that the Bonus Shares will not be entitled to any dividends, rights, allotments or other

 

distributions, the record date for which falls on a date before the date on which the Bonus

 

Shares are allotted and issued.

 

 

 

 

4. EXTRAORDINARY GENERAL MEETING AND BOOKS CLOSURE DATE

 

 

 

The Proposed Bonus Issue is subject to the approval of Shareholders at an extraordinary

 

 

general meeting (" EGM" ) of the Company to be convened. A circular setting out, amongst other

 

 

 

things, details of the Proposed Bonus Issue and enclosing the Notice of EGM will be despatched to

 

 

Shareholders in due course (" Circular" ). The SGX-ST has today provided its in-principle clearance

 

 

 

on the Circular and Shareholders should note that the SGX-ST's in-principle clearance on the

 

Circular is not to be taken as an indication of the merits of the Proposed Bonus Issue or the Group.

 

The Books Closure Date for the purpose of determining the entitlements of Shareholders

 

under the Proposed Bonus Issue will be announced by the Company in due course.

 

 

 

 

 

 

 

 

Super Group - Better entry opportunity now

Written By Stock Fanatic on Thursday, March 13, 2014

 

Recent share price weakness has brought Super Group's valuations to more attractive levels. We took the company on a roadshow, where it shared how it is coping in its core coffee and new markets, and of its move into the premium-end of the non-dairy creamer segment (NDC).

If 2013 was a year of rebranding (for coffee) and market diversification (for NDC), we see 2014 as a year for its new coffee markets to step up, its mainstay coffee markets to stabilise and its NDC to product differentiate ? these are its potential price catalysts. We keep our EPS forecasts and target price (still based on 23.5x CY15 P/E, in line with Nestle Malaysia). As recent price weakness opens up room for a more positive view, we upgrade our rating from Hold to Add.

Dissecting coffee markets

Super has a mix of mature markets and new growth markets. The diversity helps to even out the impact of challenges in each market at any point in time. In the consumer division, the Philippines (its 6th largest market) and Myanmar (2nd largest) are the relatively more challenging markets right now, while China (5th largest), Thailand (largest) and Malaysia (3rd largest) look more promising. Each market requires a slightly different strategy to cater to the local tastes and competitive pressures. Market conditions will also vary but the group's brand legacy and distributor links will ensure that it will have a place among the leaders in 3-in-1 coffee. We explore the issues of each specific market.

Ingredients strategy

In its food ingredients business, competition from large Chinese players has pushed Super Group to adopt strategic initiatives such as increasing its cost efficiency, and product value-add and differentiation. Meanwhile, even as it steps up the execution of these strategies, the booming NDC sales in SE Asia help to offset this competitive concern.

Technical Analysis

Daily Chart

Margin concerns

The main investor concern seems to be whether the rising raw material prices will impinge on margins. 

According to management, this is not a major worry for now as: 

1) raw material prices are nowhere near their 2011 levels, 

2) its average selling prices have been raised to compensate for the cost increase in the past and the price hikes remained, 

3) it now has greater economies of scale, and 

4) it has done some SKU rationalisation. 

All in, management believes it can cope with the increased costs and maintain margins. (Read Report)

 

 

CIMB :Add, TP 4.20

  Better entry opportunity now



 

 

 

Recent share price weakness has brought SuperGroup's valuations to more attractive levels. We took the company on a roadshow, whereit sharedhow it is coping in its core coffeeandnew markets, and of itsmoveinto the premium-end of the non-dairy creamer segment (NDC).

 



If 2013 was a year of rebranding (for coffee) and market diversification (for NDC), we see 2014 as a year for its new coffee markets to step up, its mainstay coffee markets to stabilise and its NDC to product differentiate ? these are its potential price catalysts. We keep our EPS forecasts and target price (still based on 23.5x CY15 P/E, in line with Nestle Malaysia). As recent price weakness opens up room for a more positive view, we upgrade our rating from Hold to Add.



 

 

 

Dissecting coffee markets



 

 

Super has a mix of mature markets and new growth markets. The diversity helps to even out the impact of challenges in each market at any point in time. In the consumer division, the Philippines (its 6th largest market) and Myanmar (2nd largest) are the relatively more challenging markets right now, while China (5th largest), Thailand (largest) and Malaysia (3rd

largest) look more promising. Each market requires a slightly different strategy to cater to the local tastes and competitive pressures. Market conditions will also vary but the group's brand legacy and distributor links will ensure that it

 



will have a place among the leaders in 3-in-1 coffee. We explore the issues of each specific market.



 

 

 

Ingredients strategy



 

 

In its food ingredients business, competition from large Chinese players has pushed Super Group to adopt strategic initiatives such as increasing its cost efficiency, and product value-add and differentiation. Meanwhile, even as it steps up the execution of these strategies, the booming NDC sales in SE Asia help to offset this competitive concern.



Margin concerns



 

 

The main investor concern seems to be whether the rising raw material prices will impinge on margins. According to management, this is not a major worry for now as: 1) raw material prices are nowhere near their 2011 levels, 2) its average selling prices have been raised to compensate for the cost increase in the past and the price hikes remained, 3) it now has greater economies of scale, and 4) it has done some SKU rationalisation. All in, management believes it can cope with the increased costs and maintain margins.

  https://brokingrfs.cimb.com/RnfQQiQzL6c79bNtcy9RSklYK8yqK1lupSRIsYjjV8TlQsA62lty1nrO0OKyFqLJc9rfFqmuPOk1.pdf



 

 

 

 

Supergroup share price continues to slide today. Lucky I able to withdraw my buy order before trading started today.

 

Hi Bro, thanks for your comment and advice. Initially, I thought of buying Supergroup today but after viewing your opinion, I think I better hold back till it reaches more attractive level. 

Markie      ( Date: 10-Mar-2014 00:11) Posted: Well with rising commodity prices (given the current bull run, not too sure when it will end), it obviously doesn't bode well for super. That was exactly what happen during the commodity boom. U have super trading at low prices and when the boom was over, super appreciated to high levels given low prices for coffee beans. So the outlook is pretty mix. On one hand, the future looks less bright. On the other, market consolidation is high in the FnB industry- there's a chance of a buyout. That being said, at current PE of more than 20, it certainly isn't enticing for a buyout yet. Novice13      ( Date: 09-Mar-2014 22:32) Posted: Any comment or opinion on this counter? Is this counter worth to invest in for mid to long term? Hope someone can share his view on this counter.

 

Well with rising commodity prices (given the current bull run, not too sure when it will end), it obviously doesn't bode well for super. That was exactly what happen during the commodity boom. U have super trading at low prices and when the boom was over, super appreciated to high levels given low prices for coffee beans.

So the outlook is pretty mix. On one hand, the future looks less bright. On the other, market consolidation is high in the FnB industry- there's a chance of a buyout. That being said, at current PE of more than 20, it certainly isn't enticing for a buyout yet.

Novice13      ( Date: 09-Mar-2014 22:32) Posted: Any comment or opinion on this counter? Is this counter worth to invest in for mid to long term? Hope someone can share his view on this counter.

 

Any comment or opinion on this counter? Is this counter worth to invest in for mid to long term? Hope someone can share his view on this counter. 

 

 

NAV : 83.74c

PB stands at 4.3 times

 

 

Maybank-KE downgrade Super to Hold with $3.72 TP, as the house postulates that the group?s near-term outlook does not justify current valuations. The house expects several headwinds to curb earnings growth going forward highlighting a rather mixed outlook in most of Super?s core markets. Despite improved sales in Myanmar during 4Q13, after Super reduced prices to its local JV partners, the house believes growth is likely to remain muted without significant increases in per capita income. Furthermore, the on-going political standoff in Thailand is expected to weight on growth, at a time when margins are under threat from increasing raw material prices since the beginning of the year. Outside of its core markets of Thailand, Myanmar, Malaysia and Singapore, Super continues to grapple with growth challenges. In the Philippines, the group is experiencing a setback after a strong start to 2013, with revenue contracting by 40% y/y in 4Q13, as new coffee flavours were outsold by more innovative competitors. Meanwhile, the group has been unable to make a major breakthrough in Indonesia so far. Going forward, management has lowered its growth target in the branded consumer segment from 10-15% to 5-10%, signalling intensifying competition in existing markets. At current price, Super trades at 25.8x FY13 P/E and remains in a net-cash position of $98.5m.

 

personally think that this is a good counter.. will accumulate on price dip.

it is always moving so it's a good stock to make money.. just have to choose the entry and exit point properly. 

 

Many mixed reports. Anyone vested in this?

 

Another rubbish report from the bank..

The share is already trading at the target price, so what kind of advise is the bank giving the reader?

At least make an effort to predict the movement.. haha.. lame effort from the research desk. 

 

 

Super Group- 2013: Respectable results but a challenging outlook.

(SUPER SP/HOLD/S$3.90/Target: S$3.87)

FY14F PE (x): 25.0

FY15F PE (x): 20.9

Respectable showing in 2013 with goodies for shareholders. Excluding non- recurrent

gains (S$17.1m from the disposal of Sun Resources), the group?s 2013 net profit of

S$82.9m (+5% yoy) came in within our expectations. Management announced a final

dividend of 7.0 cents/share, bringing full-year dividends to 9.0cents/share (+27% yoy)

and a 1-for-1bonus issue.

HOLD for strong cash flow and being Asia consumption proxy. Maintain HOLD and

target price of S$3.87, based on peers? average of 24.8x 2014F PE. We use PE rather

than PEG given the uncertain near-term outlook for markets, such as Thailand and

Indonesia. We would revisit our call when more positive datapoints from China emerge.

Entry price is below S$3.50.



uobkh

 

Buy on rumours, sell on news!

 

Super Group Ltd - Soft outlook ahead

Written By Stock Fanatic on Tuesday, February 25, 2014

  ? FY13 results slightly ahead on better-than-expected gross margins