People's Food

[winston]

From CIMB:-

In line. 1QFY08 net profit of Rmb 142m represented 21.1% and 22.5% of our and consensus FY08 forecasts, in line with our expectations. Turnover grew 10.8% yoy despite a drop in sales volume due to the supply shortage and the closure of the Dezhou plant.

Although gross margin shed 4.7%pt yoy to 8.3% due to higher procurement costs, this already represented a big improvement from 2QFY07 when tight hog supply forced closure of its Dezhou plant, a move that cut its production capacity by 30%.

• Encouraged by sequential improvement in margins on change in product mix.
Gross margin showed sequential improvement from 7.0% in 4QFY07 to 8.3% in 1QFY08 on better pass through of higher costs and higher contribution of downstream products from 29% of sales in 4Q07 to 33.5%.

The group has also made good progress in boosting its fresh pork sales whose contribution to sales rose from 19% in 4Q07 to 22.8% while frozen pork contribution declined from 31.8% to 27% in 1Q08. Pretax margins expanded for all except for HTMPs likely due to weakness in gross margin as a result of higher hog prices.
HTMP market remains the most competitive where ASP increases are more difficult to implement.

• Expect better sales and profitability as hog supply improves.
Dezhou plant recommenced operation in March as hog supply improves. As a result we expect slaughtering volume to pick up starting 2Q. That said, we maintain our view that hog supply will only increase materially in 4Q08 hence live hog prices are likely to hover at high levels in the near term. We expect the group to continue strengthening its fresh pork and LTMP business which is positive for its long term growth.

• Maintain Outperform with an unchanged target price of S$1.31.
The share price has risen only 7.4% since our upgrade to outperform in March after the group released its FY07 results. We believe current share price does not reflect Pfood’s earnings recovery, thus we maintain our Outperform recommendation. We continue to value the stock using discounted cash flow (WACC 13.5% and LTG 2%) which gives a target price of S$1.31, equivalent to 9.4x CY09 P/E.

Not vested..

[millionairemind]

Looks like earnings are on the mend...hmm...

People's Food Q2 net profit up on healthy sales
By NISHA RAMCHANDANI

People's Food Holdings saw profit soar 163 per cent year on year to RMB166.6 million for 2Q08 ended 30 June, from RMB63.3 million.

Revenue for the quarter was up 19.7 per cent to RMB2.47 billion, compared to RMB2.06 billion in 2Q07.

For 1H08, net profit grew 6.2 per cent to RMB308.8 million from RMB290.7 million in 1H07. Revenue was 15 per cent higher, coming in at RMB5.03 billion from RMB4.38 billion.

Earnings per share (EPS) for the quarter were RMB0.14 from RMB0.06 previously, while EPS for 1H08 was RMB0.27, a marginal increase from RMB0.26 for the corresponding period last year.

An interim dividend of RMB0.082 for the quarter will be paid out, although the date will be announced at a later period.

Going forward, the group 'will focus on market development and expansion into new geographical regions. The group would also invest in advertising and promotion to increase distribution channels,' it said.

[winston]

Wah, what happened to people's Food today ?

No news on SGX website...

Who dares to say that SGX is boring ?

[winston]

Not vested. From Kim Eng:-

People's Food Holdings – The company, which has faced a shortage of live pigs for pork production, is embarking on commercial pig farming after an evaluation over the past year. This will involve building breeding farms, feed mills and sewage treatment areas. The group is now reviewing and negotiating various financing arrangements but does not expect to have to raise capital from shareholders.

The company said the project will reduce its dependence on third-party suppliers and will enable it to vertically integrate its business operations. The group will also be able to better manage the supply and cost of live pigs and enhance its competitive position in the market, which in turn should increase its profitability in the long term. According to People's Food, the pig farming project is in line with the Chinese government's recently announced initiatives for the corporatisation and quasi-corporatisation of the pig farming industry.

The company provided the updates in response to a query from the Singapore Exchange on unusual trading activity in its shares on Monday. It said it was not aware of any circumstances that could have caused its share price to fall.

[kennynah]

Wah, what happened to people's Food today ?

No news on SGX website...

Who dares to say that SGX is boring ?

I

[blid2def]

The company ... said it was not aware of any circumstances that could have caused its share price to fall.

I think all the companies might as well have an autoreply set up in a mailbox, and have SGX send all queries on abnormal price movements there. Has anyone ever seen a different reply from a company in response to SGX's probe?

SGX: "Oi. Got smoke".
Company: "Oh yes, got smoke".
SGX: "Is your house on fire?".
Company: "Hmm... got smoke. Dunno why got smoke".
SGX: * silence *
Company: * silence *

[kennynah]

wahahahaha

u see boss....sgx earns money from listed companies....they get paid fees from them just to keep them listed...so, these companies are customers...so can expect the wayang tom and jerry routine...

but if mas takes up the role like what SEC does, then maybe diff stories...

companies who anyhow answer, later found to be fraudulent acts, eventually kana whipped..then they will learn to be more responsible than to use a standard "beep....this is an auto-reply" mode...

[financecaptain]

"No fire, why got smoke ?"; "No wind, why such strong current ?"

Heard certain issues about this counter quite a while ago. Of course these were just rumours ...

[winston]

Wonder how the melamine found in some animal feeds would be affecting them ?

Singapore Hot Stocks - People's Food up on strong earnings

SINGAPORE, Nov 14 (Reuters) - Shares of Singapore-listed People's Food soared as much as 16 percent on Friday after it announced a 147 percent rise in third quarter net profit on Thursday.

Brokerage firm CIMB said the results were above expectations and raised its earnings-per-share estimate for the Chinese food company by 12 percent for 2008 and 8.9 percent for 2009.

CIMB also kept its "outperform" rating on the stock.

"They (People's Food) must have worked on their cost efficiencies," a Singapore dealer said, adding the results spurred buying of the stock.

By 0300 GMT, shares of People's Food were up 15 percent at S$0.56, while the benchmark Straits Times Index <.FTSTI> gained 2.1 percent.

[winston]

DJ MARKET TALK: People's Food +2.5%; Demand Eyed Resilient - UOB

0228 GMT [Dow Jones] People's Food (P05.SG) +2.5% at S$0.605 following sharp improvement in latest earnings. Net profit for 4Q08, FY08 +59.4%, +43.0% on-year respectively at CNY185 million, CNY702.7 million due to higher revenue on back of increased selling prices, sales volume.

Despite prospect of selling prices across industry heading down due to new hog supply in China in 1Q09, demand for China-based meat supplier's products still expected to hold up, says UOB KayHian; "considering the defensive demand for fresh pork and frozen pork as daily necessities, we expect falling pork prices to boost consumer demand and lead to steady turnover growth."

Modest volume suggests limited buying interest. Resistance tipped at 20-day moving average of around S$0.63.