Super Grp

Super Grp: SCB reiterate Outperform rating on Super Group with a new TP of $3.64, offering 21% potential upside. House raise FY12E and FY13E EPS for Super by 22% and 25%, respectively, to account for its strong growth prospects in 2013. Introduce a new valuation for Super, which incorporates a separate DCF valuation for the branded consumer segment (translates to 22x FY14E PER) and the food ingredients segment (translates to 11x FY14E PER). TP for Super is based on the SOTP valuation and translates to 20x FY14E P/E. Super’s margins sustained the uptrend in 3Q12, with gross profit margin rising to 36.1% from 35.7% in 2Q12 aided by weak raw material prices. Net profit margin increased to 17.4% in 3Q12 from 15.6% in 2Q12. House now expect margins to remain stable through 2013, supported by low input prices and ongoing capacity expansion initiatives