Hooted my 2nd stock - The Super Group.
"The Company is an integrated instant F&B brand owner of instant
food and beverage with market in Southeast Asia. The Company operates in
three principal geographical areas, Singapore, Southeast Asia and East
Asia. The Company manufactures and distributes branded consumer
products, primarily instant coffee, instant cereals and instant tea
mixes products. The Company has developed over 300 instant beverages and
convenient food products. Some of the Company’s brands include Super,
Owl, Super Power, Cafe Nova, YeYe, Coffee King, Gold Eagle, Negresco and
Eagle King."
This is a solid company with some very strong track records:
For the past 20 years, they've been constantly issuing dividends, every single year without fail - even during financial crisis (e.g. 2008).
The stock took a dip a while back, falling from its high to below 20P/E ($5 to $3.50). This made it a good value. Even using conservative estimates (10% growth), its intrinsic value is at least $4.20. The recently announced bonus offer feels like a good chance to get in.
Merits:
- Defensive stock with consistently growth: people will still drink coffee 20 years from now.
- Solid balance sheet. $300m in current assets vs $100m liabilities. (So MUCH CASH!) That means it can makes investment/acquisition in the future without the need for further funding from shareholders.
- Committed to delivering at least 50% of their profits as dividends.
- Rebranding in their core markets like Singapore, Malaysia and Thailand.
- Growth and expansion into new markets like China, Philippines, Europe.
- Research and development into other products such as creamer, nutritious powders and cereals.
Next time you drop by the super-market, pick up one of their product, OK?
