Wednesday, September 25, 2013

Maybank KE Report 26 Sep 13

Singapore Daily

Super Group: Chinese Caffeine Fix; Maintain Buy TP $6.00
SUPER SP | Mkt Cap USD1.9b | ADTV USD1.5m

� Reiterate BUY and Street-high TP of SGD6. Super recently launched its coffee products in China, where it used to just sell instant cereals. China is a big potential market, with instant coffee expected to grow at 12% CAGR over the next five years, driven mainly by a younger audience influenced by the Starbucks Culture.
� A major marketing thrust is the introduction of a new instant cup format that will be sold mainly through convenience stores. As an early-mover, Super has the chance to generate significant brand equity from this.
� We believe this market has the potential to become a significant contributor in the next 2-3 years. We keep our DCF-based TP of SGD6.00 unchanged, implying 28.3x FY14F PER.

Click here for full report jameskoh@maybank-ke.com.sg

No comments:

Post a Comment