Tuesday, January 15, 2013

Super

Super: StanChart reiterates OUTPERFORM and increased their TP to $3.64, based on a SOTP valuation translating to a blended 20x PER for FY14E. The house raises FY12E/ FY13E EPS by 22%/ 25% to account for its strong growth prospects for 2013. The house noted that a growth rebound should be expected for the Thai market and resilient growth in the company's other markets, such as the Philippines and Singapore. The successful execution of Super's rebranding campaign will be an important driver of sales growth for the segment. StanChart believe that the ingredients business will be the key growth segment, driven by the ongoing capacity expansion initiatives. The company completed the construction of a freeze-dried coffee line in 2012, and will finish building its botanical herbal extract plant by the end of 2013. House expect the expansion into these high-value products to improve Super's product mix and provide margin support.

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