Back in Apr i called on people to have a closer look at this company.My personal target was 70-80cs, when the price was breaking new highs at ard 37-40c based on certain factors. I posted on CNA Forum but sadly the thread is missing right now.
Looks good to invest for long term......wat do u guys think...better still they just open the russian plant.
APr 2006
"Looking at its results, company stock px(current of 37c) could double if operating expense were to fall.
Heres the breakdown
Fy 05, Revenue for 184 Mil RAw Material -96Mil Other operation cost : -49Mil Profit : 21Mil No of shares : 368 128 000 EPS : 5.6 P/E (at 37c) : 6.61x (approx +/- 0.3)
The company alerted investors that the higher import cost (customs duty) in Russia caused the profits to be eaten earlier (fy05). The company plan was to set up a prodution plant in Russia and combat this problem. Plant will be ready in 2nd half of 2006. Another problem they face will be high material cost such as sugar, creamer prices but its kind of slight cos as sugar px rocket, their material cost is still about 96 Mil.
Margin would be much better if not for the high operation cost.
They have recorded double digit growth for the past 6 years too
I assume next year they achieved a conservative 10% growh. I assume operation cost remains the same, but if there is a 30% reduction in it. The EPS and P/E ratio will be much higher and lower respectively
Assume steady growth at 10%, raw materials cost +10% more fy 06 EPS will be at 6c P/E will be (at current px) = 5.4x
Assume steady growth at 10%, raw material cost +10 % fy 06 and 30% reduction in operating cost EPS will be 12c and PE will be at (current px) 3.02 !!!
Further to that Top 20 largest shareholders include Best Gate investment Morgan Stanley Asia Securities Merrill Lynch pte ltd and a host of single investors name
ITS A BUY for me how about the rEST? And forumer has highlighted a divdend of about 5+% to be given soon
AGM is next week. Going to ask the mgmt how much can they save on their operating costs, if really 30%, thats it liaoz "
