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6/6/08 DBS : Price Target : 12-Month S$ 1.49 (Prev S$ 1.45)
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company remain very firm, thanks to its strong management
team, stable of brand names, distribution/sales channel and
strong balance sheet.
Regional and global peers are trading at an average forward
PER of over 20x, versus HFC’s 12x. Although peers are larger in
size and scale, the disparity of c. 40% is unjustified, in our
view. This should narrow as management continues to grow
its topline and deliver sustainable profit growth.
HFC is trading at 5.6x EV/EBITDA, 1.9x P/B and 1.1x P/S (on
FY09F). It also has a reasonable net dividend yield of 2.9% and
3.4% in FYE Jun 08F and 09F based on our payout ratio
assumption of 40%. It has a net cash of RMB550m (RMB0.69
or S$0.14 per share). Maintain BUY, TP: S$1.49 premised on
16x FY09F earnings (previously 18x on blended FY08/09 EPS),
at its historical average PER and a 25% discount to
regional/global peers.
Full year Financial Statements and dividend for the year ended 30 June 07 is out.
2007 Rev RMB$2,712,470,000 up by31.9% vs 2006
2007 Net Profit RMB $255,329,000 up by 20.8% vs 2006
EPS RMB 34.38cents
Proposed final dividend RMB 13cents per share
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_F3331E0F8AAC9D3B4825733C007D1DB6/$file/HsuFuChi-FullYr2007-Results.pdf?openelement
from sources, this is aJV and managed by group of foreigners so can trust lah
With the government clamping down on unethical food producers, it will benefit those manufacturers with Good Manufacturing Practice.
Those companies that have a share of the Olympic pie like Synear and China Kangda will benefit.
it has a very complex network for candies in China
good potential, substantial market share in China
DBSV targets $1.41 this morning!!!!!CHEONG AH!!!!!!!!!
Story:
confectionery products ? namely, candies, cake and cookies and
sachima (a traditional Chinese puff pastry).
Hsu Fu Chi (HFC) is a manufacturer and distributor of��
industry; according to Euromonitor, it has a sugar confectionery
market share of about 4.1% in 2005. It also manages its own
network of 68 sales offices with over 5,000 sales personnel
throughout China. HFC has over 400 products, which are mainly
marketed under its well-known Hsu Fu Chi (?
Point: The Group is a leading player in China?s candy������?) brand.��
16% for FY08F and FY09F, driven by growing consumer
affluence in China, underpinned by its sales/distribution network
and capacity expansion. We initiate coverage on the counter
with a
FY08/09F blended earnings
anyone hav any idea about this counter?
will it be recovering some losses?
thanz
It slumped on weaker six-month net profit, said dealers. Hsu Fu Chi posted a 12% fall in half-year earnings to 127 million yuan compared to the same period a year ago.
"Traders have priced in high expectations for stocks with upcoming results, so the stocks would be whacked with any slight drop in earnings," said one dealer from a local brokerage.
OCBC downgraded its rating to "hold" from "buy" on valuation grounds, and maintained a target price of $1.37 on limited potential upside.