Sunday, March 9, 2014

OCBC Report 10 Mar 14

KEY IDEA

Petra Foods: Smaller but nimbler

Petra Foods’ continuing operations’ fundamental growth in FY13 is stronger than reported due to IDR depreciation. Stripping the depreciation, we estimate that FY13 PATMI would have increased 17% to US$63.6m (versus 9.1% to US$59.3m reported). We understand from management meeting that its product launches are consumer-oriented and country-specific, which we think will continue to deliver growth ahead. A potential re-rating catalyst is overseas brands acquisition with its US$164m net proceeds from its Cocoa Ingredients division sales to jumpstart market penetration. We raise our FY14 forecasts (denoted in USD) as IDR depreciation shows sign of abating. We maintain BUY with new fair value estimate of S$4.08 (previous: S$3.95). (Yap Kim Leng)
For more information on the above, visit www.ocbcresearch.comfor the detailed report.

NEWS HEADLINES


- The S&P 500 notched the latest in a string of record closes Fri as U.S. equities ended mostly higher but off of early gains inspired by a bigger-than-expected rise in Feb nonfarm payrolls to extend a weekly winning streak.

- Nine stocks will be added to the FTSE ST Small Cap Index, the largest capitalised of which represent stocks with a regional focus or in the energy, offshore marine and REIT sectors.

- A number of fund management firms are taking a hard look at their unit trusts, and culling or restructuring smaller funds that may not be viable.

- The recent volatility in the Chinese currency has rekindled fears over the growing exposure of mainland property developers to overseas debt.

- Ho Bee Land continues its overseas foray, buying its second property in London for £171m (S$362.5m).

- Banyan Tree Holdings and Malaysian boutique property developer Senja Aman Group launched the sale of luxury suites for the Angsana Teluk Bahang beach resort in Penang.

No comments:

Post a Comment