FOOD EMPIRE

Hit 48 cents just now.....
Food Empire (11X PE) is closing the valuation gap with Super (18 X PE).

First half of 2012 results already showed improved profit margins from a decreases in the prices of the raw materials it used for its coffee products - coffee, sugar and creamer.

With palm oil prices down sharply of late, the cost of raw materials (esp creamer) will be kind to Food Empire's profitability.

my fren fatabulous says:

Super is more focus on its various brands of coffee and have been successful in revamping their brands of coffee over the years...

Owl is under their umbrella of brands too...

Food Empire is still into coffee and sweets for the Russian and Eastern Europe... but it has also moved into convenient food (deep fried frozen food) two years ago...

Lack of branding and product range has put Food Empire behind its SUPER peer.

Still prefer Super over Food Empire, but at this current price... wait for correction to buy cheap. ;p

If Food Empire were to trade at the same PE as Super Group, the stock of Food Empire would be at 78.5 cents!

Now it's 47.5 cents.... Where are the DMG, DBS, UOB, CIMB analysts? They still have not spotted this undervalued counter!
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[X- 03-10-2012]:

Hit 48 cents just now.....
Food Empire (11X PE) is closing the valuation gap with Super (18 X PE).

Should compare:

Super vs Food Expire vs VizBranz vs Tsit Wing

Note that Tsit Wing was once almost delisted at abt 26 ct? Now only 19 ct!

Super's market valuation is at a premium because fund managers bought Super shares based on Super's leadership position in Southeast Asia. From a top-down portfolio allocation viewpoint, investment managers are very bullish on the Southeast Asia growth story of developing nations with large populations like Indonesia, Myanmar and Vietnam.
 
 
Food Empire has a market threshold similar to Super - of developing nations. But its key markets are in Central Asia and East Europe, and much more fragmented. Central Asia has a total population of 65m. Russia, Turkey, Ukraine add up to another 268m coffee drinkers. So total is 333million coffee drinkers in key markets.
 
In comparison, Super's market is more concentrated - Southeast Asia with a total population of 650 million.