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
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