Food Empire

[Blackjack]

Marketing their annual report as well.

Food Empire's Annual Report "Warriors of the Empire" wins a Gold in 2008 International ARC Award The International Competition Honoring Outstanding Achievements for Annual Reports -
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_C6964988B17B6377482574AA0011FFA4/$file/FE_Warriors_of_the_Empire_wins_Gold.pdf?openelement

Well I really thought it was quite pro.

[fclim]

today's biz times recommended it.... target price is $3.08...
not sure if really or not... hee...

have fun,
fc

[Blackjack]

San San> Good idea... Maybe it can be pre-coffee-stained with MacCoffee as well? Or can include a little satchet to send along with the hard copy.

fclim> Think you are referring to their broker's pick using OCBC's report? TP is only $0.65 la.
http://www.remisiers.org/research//Food%20Empire-080819-OIR.pdf

[helios]

San San> Good idea... Maybe it can be pre-coffee-stained with MacCoffee as well? Or can include a little satchet to send along with the hard copy.

yo BJackie,

>>> you got my ádmiration on your [sales] presenting skills. You are awesome, pal.
>>> & fclim was mentioning this article in the morning (literally, he is another Kopi guy).
>>> in your opinion, which of the 2-Kopi will be appropriate for the Russian backdoor listing? (our Lena Jie was guessing as well, fyi) ...

[ishak]

Tue, 19 Aug 2008, 11:12:39 SGT
By Lee Wen Ching

Singapore’s efforts to encourage business ties with Russia serve as an endorsement of Russia’s bountiful investment opportunities and flourishing economy. Indeed, emerging markets such as Russia, Ukraine and Kazakhstan are expected to outpace the global economic growth in the coming years. Food Empire Holdings (FEH) is in the sweet spot of all the action – it manufactures and markets instant beverages and snacks to over 65 countries with a strong focus on emerging markets such as Russia. Having established its presence in these countries, it is poised to benefit from their growing F&B markets. We forecast earnings to grow by 11% in FY08 and 9% in FY09. We initiate coverage on FEH with a BUY rating and S$0.65 fair value estimate based on 10x blended FY08/09 PER.

Flourishing opportunities from emerging countries. Singapore’s efforts to encourage business ties with Russia serve as an endorsement of Russia’s bountiful investment opportunities and flourishing economy. Indeed, emerging markets such as Russia, Ukraine and Kazakhstan are expected to post real GDP growth of 7.3% to 8.5%, outpacing the world average of 5.2%, according to official statistics from the Central Intelligence Agency.

Exposure to a diverse portfolio of emerging markets. Food Empire Holdings (FEH) is in the sweet spot of all the action. It manufactures and markets instant beverages and snacks to over 65 countries, and it offers a unique value proposition by virtue of its target market – a divesification across several emerging economies, with Russia being its largest market. Having established its presence and secured its foothold, FEH is poised to leverage on increasing disposable incomes and growing consumer spending among these nations, including Ukraine and Kazakhstan.

On top of good track record, recent acquisition an earnings booster. FEH has been posting double-digit earnings growth for the past two years, and has maintained a healthy gross profit margin despite recent escalations in commodity prices. We expect earnings to get a boost from its acquisition of Petrovskaya – a household instant coffee mix brand that commands 22% market share in Ukraine – which will contribute meaningfully to earnings from FY08. Brand acquisitions are the quickest way to gain market share as coffee products tend to carry some “stickiness” in terms of brand loyalty. With this acquisition, FEH will capture a new target market and expand its market share.

Investment risks. FEH’s key investment risks include the threat of continued escalations in commodities prices which could lead to margin pressures, regulatory and political risks relating to global markets, forex risks, as well as a potential shift of consumers’ preference towards upscale coffee alternatives (such as Starbucks) along with growing affluence. Nevertheless, it offers investors an opportunity to leverage on growing consumption in emerging economies such as Russia, which is unique among locally listed stocks. We forecast earnings to grow by 11% in FY08 and 9% in FY09. We initiate coverage on FEH with a BUY rating and S$0.65 fair value estimate based on 10x blended FY08/09 PER.

[Blackjack]

>>> you got my ádmiration on your [sales] presenting skills.

You remind me back when I was doing my thesis presentation in my final year in NUS… Got suan-ed that I sounded more like a salesman than an engineer. Had to sales pitch heavily as my results were reverse engineered. Well, glad I'm not an engineer now.

>>> in your opinion, which of the 2-Kopi will be appropriate for the Russian backdoor listing? (our Lena Jie was guessing as well, fyi) ...

I’ll go with MacCoffee. With its premium SuperBrand status in Russia compared to Petrovskaya I think it should attract greater investor interest more easily. That said, Russia’s ytd index performance is still a bit poorer compared to STI for now. They suffering more than us... What’s your guess then? (as well as Lena’s)

[fclim]

fclim> Think you are referring to their broker's pick using OCBC's report? TP is only $0.65 la.
http://www.remisiers.org/research//Food%20Empire-080819-OIR.pdf

ehh.... blackjack,
u may be rite on...
i dun have the copy of the papers now to confirm...
most likely i see wrongly *shoot bird*... pai seh to have misled anybody hor...
will check the papers again to tonite, solli solli...

have fun,
fc

[Blackjack]

fclim> Think you are referring to their broker's pick using OCBC's report? TP is only $0.65 la.
http://www.remisiers.org/research//Food%20Empire-080819-OIR.pdf

ehh.... blackjack,
u may be rite on...
i dun have the copy of the papers now to confirm...
most likely i see wrongly *shoot bird*... pai seh to have misled anybody hor...
will check the papers again to tonite, solli solli...

have fun,
fc

No prob... I see your TP also happy for a few milliseconds. It's a charitable thought to cheer someone up this way.

[fclim]

No prob... I see your TP also happy for a few milliseconds. It's a charitable thought to cheer someone up this way.

Hi Blackjack and all,

Thanks to blackjack, he rightly pointed out the mistake.

I checked the newpapers liaoz and confirm confirm (double-confirm) that blackjack's figure is right!

Apologies for the wrong information posted.

have fun,
fc

[helios]

yo,

no decision?

individual's interpretation, beauty is in the éyes of the beholder ...



- Weekly Chart reviewed on 22-Aug'08.