Pwroot has long been under my watchlist but the price stubbornly above RM2.000. Thanks to those selling at RM1.47, which allow me to grab some. =) At RM1.50 and 9 cent dividend, the return will be more than 5%.
I realize that average selling price of instant coffee 3-in-1 is higher than last year. A packet (i cant remember how many sachets in 1 packet, maybe 20 sachets) is now sold btwn range RM13 to RM15, whereas last year it was btwn RM10 to RM13.this may translate to higher revenue.
Those buying now is buying cheaply compare to those buying above RM2 which include their directors. 9sen dividend mean DY 5.5%. If reach RM 2(TP) DY become 4.5% something not impossible or 23% upside.
Holding power is the key, panic selling during market dip is good opportunity to accumulate more...but don't forget, panic selling might persist --> Holding power is the key :-)
today Q3 result will be out. I expect the revenue will be higher due to World Cup and contest. However, advertisement and promotion cost will also be higher. Wether it is 4 or 5 cent dividend, we only know this evening.
Talking about having a good share of repeat business - 1) draw on the technical charts 3-7-2014 to reach market shares of high-butt, closing closing RM2.43, after the start Dropped to 15-10-2014, closing closing RM1.49 (rsi = 2%), at 16-10-2014 started to rise, Closing closing rm1.52 (rsi = 8%), back up to 5-11-2014 are slowly closing closing RM1.78 (rsi = 97%) Is overbought, but the transaction is not, therefore pre still bright. 2) Pwroot 7237 price bit Rm1.78 enter the year 9sen dividend, dividend yield (dy) up to 5%, Shareholders to buy back company stock, the net cash the company, there are 45 million after deducting debt, with good growth potential, you can buy and hold. 3) The estimated annual net profit of about 39M, EPS = 13 SEN, now the price of RM1.78 only PE = 13.7 times in the transaction significantly undervalued, Take reasonable PE = 17 times (due to dividend advantage about 9SEN), target price = RM2.21 4) PWROOT has not yet sent a listing of bonus shares, the next issue bonus, stock shares odds In the current market stock selection is very important, PWROOT I feel safe to receive dividends, and made long-term capital growth, Business resilience and strong, ALICAFE, AHUAT brand has caught on, considering the stock market risk, this share is a good choice. 5) listed seven years to make money every year, has not issued bonus shares, under the wise and the integrity of the boss good leadership, pwroot has made significant progress in recent years, the company can continue to grow, I believe that the next few years will achieve good plot, increase dividends sent Bonus shares and release of stock value. 6) an annual net profit of listed so far, selling products at home and abroad, 45 million in cash, equivalent to about 14.5 sen per share in cash, The latest calculated Q1 earnings, up 10.6 percent earn deputy, is quite good, the business has been on the track, stable interest income and enjoying Capital growth, now that the market into this ticket is ideal to eat, sleep at ease. 7) Cimb bank ceo's brother (M0hamed nizam bin abdul razal) still have 2398,000 shares (0.79%), For the first 23 major shareholders, you can buy it? Haha, this is since 2012 to 2014, only reduce the 150,000 shares, showing his confidence pwroot's. The company listed in 2007, when the ipo = rm1.48, so the share price dropped to rm1.48 before large shareholders comes into play, 8) The 30 largest shareholders holding a total of 80.59%, net of the 30 largest market for traffic less than 60,000, The largest three shareholders control 62.2 percent prison, a payout ratio of net profit of 70% (2013 total to 9sen), Must not let outsiders fields, three shareholder dividend income only everyone was 5.4 million, just to maintain the net, generous delivery believe can continue. 2012's felda shareholder has sold a majority stake, only 1.65%, 2.92% and joined cpf there, is expected to increase stake in the future, and the other has a 2.15% jp morgan Individual projections, out of ego. Posted taken - [Source of power of the four big motivating factor] 1) good prospects for export growth; 2) continue to explore new markets; 3) introduction of new products, including a reaction impressive "A fat" new brand; 4) The business can be greatly expanded, because of strong domestic and international markets.
Foolish Face-Off: Super Group versus Power Root Berhad Two instant coffee makers slugging it out.
By Sudhan P - July 14, 2014 | More on: S10
0
inShare boxing gloves
The Foolish Face-Off series pits two businesses that are similar in nature against each other. In this latest instalment, we will let Singapore-listed Super Group (SGX: S10) and Malaysia-listed Power Root Berhad tussle it out in the ring to see which company emerges victorious.
Introducing the contenders
Super Group is an integrated instant food and beverage (F&B) brand owner that operates in two main business segments – Branded Consumer and Food Ingredients. The former entails the sale of instant coffee mixes, instant tea, and cereals, under brands such as Super, Owl, and NutreMill. The latter is involved in manufacturing various types of beverage-ingredients like non-dairy creamer and soluble coffee powder for sale to other beverage manufacturers.
Super’s contender, Power Root, mainly manufactures and distributes coffee and tea products, energy drinks, and cereal drinks, among others. Some of its famous brands include Alicafe and Ah Huat.
Super Group Power Root Market Capitalisation S$1.65 billion RM681 million Revenue (last 12 months) S$549 million RM307 million Source: S& Capital IQ
Round 1: Profitability
The first round looks at the profitability of the companies in terms of their profit margins and Return on Equity (ROE). In particular, the latter shows how efficient a company’s management is in turning every dollar of shareholders’ capital into actual profits.
Super Group Power Root Gross margin* 37.7% 58.7% Net margin* 17.4% 12.5% Return on equity* (ROE) 21.0% 18.5% *Based on last 12 months’ financial figures Source: S& Capital IQ
For every dollar of revenue earned by Super, 17.4 cents is converted into profit while for its competitor, every ringgit of revenue only becomes 12.5 sen in profit. Super also has a higher ROE as compared to Power Root. However, Power Root has higher gross margin than Super; this shows that the management of Power Root is able to keep its costs for raw materials low.
With Super winning in two out of three aspects, it is the winner in this round.
Winner: Super
Round 2: Growth
In this round, we will delve into some numbers that concern the growth of the two F&B firms for the past five years at a compounded annual growth rate (CAGR) basis. In the long-term, companies that can grow their sales and profits steadily over time should also see their intrinsic value increase in tandem.
Super Group Power Root Revenue CAGR* 13.2% 17.2% Earnings per share (EPS) CAGR* 31.1% 31.8% Dividend CAGR* 41.3% 24.6% *Based on each company’s figures for their last five completed financial years; CAGR stands for Compounded Annual Growth Rate Source: S& Capital IQ
Power Root grew its earnings per share at a clip of 31.8% per year for its past five completed financial years. Meanwhile, Super is no slouch either as its EPS growth is just a hair’s breadth slower at 31.1% per annum during the same period. On the dividends front, Super’s shareholders were rewarded more handsomely as compared to Power Root’s.
With two out of three aspects in Power Root’s favour, the winner is obvious.
Winner: Power Root
Round 3: Valuation
Billionaire investor Warren Buffett once quipped that price does not equate to value as looking at the absolute price of a share tell us nothing about the value of its underlying business. Because of that, we want to look at a share’s valuation. Here’re the two companies’ price-to-earnings (PE) ratio, price-to-sales (PS) ratio and dividend yield.
Super Group Power Root Price-to-earnings (PE) ratio* 17.3 17.5 Price-to-sales (PS) ratio* 3.0 2.2 Dividend yield** 3.0% 4.2% Share price S$1.47 RM2.16 *Based on financial figures for the last 12 months **Based on current share price and dividends for last-completed financial year Source: S& Capital IQ
Since Power Root has a lower PS ratio and higher dividend yield as compared to Super, it seems to be at a better value than the latter.
Winner: Power Root
Foolish Bottom Line
Final Score: 2-1 to Power Root!
Overall, the winner in the friendly mano-a-mano is Power Root as it has shown better growth and is actually selling for a lower valuation.
But before you rush to buy shares of Power Root, you also have to delve into other important aspects of the two F&B outfits such as the strength of their balance sheet and their respective cash flow situations. We have also not looked into the companies’ management and their management track record. This Foolish Face-Off just serves as a direction in the right path. http://www.fool.sg/2014/07/14/fo ... -power-root-berhad/
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
i3i2i1
4,731 posts
Posted by i3i2i1 > 2014-10-17 09:05 | Report Abuse
so that will be the support price
Minimum price paid for each share purchased ($$) 1.450
Maximum price paid for each share purchased ($$) 1.450