Super Group

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(07-09-2012, 09:38 AM)ValueBeliever Wrote: To me doesnt matter if the Teos are all in it with the high remuneration. The same goes to who rule the country really well and reward themselves handsomely base on performance basis. From a 20+ cents share to 2+ is no easy feat.

I agree with you, partially. We need to see how many Teos are running the company when it was trading at 20+ cents, and how many now?

Remember YHS when it was run by the Yeos? Today, the company is run by the Ng instead.
Base on the AR2011, the composition of the BOD are

- Four (4) out of the eight (8) ED are founding members, while the other four (4) are neither Teo nor Te family members.
- Audit committee are from neither Teo and Te family
- The key committees (Nominating and Remuneration Committees) for staffing has only 2 (Teo or Te family members) out of 12 total members. Furthermore the committees are chaired by neither Teo nor Te family members

IMO, This is a healthy composition.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
The Ng has not given any value to shldrs for more than 12yrs. Ng Teng Fong is best remember to have delivered ZERO to shldrs and rewarded himself instead. Upon his death than value is returned? Khoo did nothing but gave to society a name Hospital in his name? Same is likely to happen in HPL. Ong Beng Seng will be best remember for the guy that created a whole lot of answering for you know who.

Shldrs will remember who did what for them, especially when they invested in Co. that are run by family concern. In fact very few made a name for shldrs value. Probably the most successful is the Kwek of CityDev - the bank didnt even come close. The fact of the matter is its very easy to be remembered for the best mgmt team despite having family members onboard. It is so easy to be best remembered in Singapore context because only a handful of Singapore Co. treat its shldrs fairly.

Look at Koh Wee Meng. He just worked very hard and followed the path of doing what he knew best and gave the best for himself and the Co. Is that so hard to do in Singapore for the top bosses of our Singapore Inc.

Look at Mr Wong Fong Fui and Koh Soo Keong, they are the best of the manager of Co. hands on and giving fair value to shldrs - we all remember when we invest in the quality of the people behind the Co. and more so if the team behind them execute well year after year in good and bad times!
Owl Cafe is now open at Star Vista Mall opposite Buona Vista MRT. I just visited it hours ago and I should say the ambience is nice and it was quite packed at 7pm. I will blog on it soon with pictures.
Visit my personal investing blog at now!
Super's share price advances quite a bit recently, closed at $3.25 today

Director Te Lay Guat spouse, Khoo Tow Kiew disposes 186 lots twice in two days with price of approx $3.2 each
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
The Straits Times
Published on Jan 07, 2013
Right ingredients for successful brew

By aaron low

FOR many investors, grabbing a 10-bagger, in which the value of the stock you hold grows by 10times, is a once-in-a-lifetime investment.

One local firm which achieved that distinction is home-grown instant coffee and cereal maker Super Group.

The company's shares were trading at a low of just 32 cents in early 2009, hit by the financial crisis.

The stock hit $3.17 last Friday, nearly 10 times its lowest in 2009.

The company manages several brands, including its own Super Coffee as well as the Owl brand instant coffee mix.

The firm's chairman, Mr David Teo, believes that the firm's success is down to two factors: becoming focused on its core product and having a strong regional strategy.

Back in 2008, the firm took a decision to sell off its non-core businesses, such as its vending machines enterprise, and put its energy and talent fully into its coffee business, said Mr Teo, 62.

At the same time, the firm also decided to start making a business out of selling the ingredients it was producing for its instant coffee mixes.

Mr Teo said the firm had decided early on that it wanted to produce its own ingredients to ensure the quality of its products.

"We are unlike other instant coffee makers, which take from different producers and simply pack it together. We are integrated from start to finish," he said.

But while the ingredients unit started out as a means to retain the quality and consistency of Super's products, it has also become an immense source of revenue for the firm in recent years, said Mr Darren Teo, the firm's corporate strategy manager and Mr Teo's son.

When the Chinese milk melamine scandal broke in 2007, the firm, which has an ingredients plant in China, got flooded with requests to produce ingredients from its customers.

"It was a big break for us. And we thought if our other rivals were selling ingredients directly to other firms, why not us," said Mr David Teo.

The ingredients business brought in $3 million in the first year. In just four years, its ingredients business grew to $120 million in 2011.

Super Group sells ingredients such as creamers to customers such as ice cream makers and bottled drinks companies.

The ingredients part of the business accounts for about 31per cent of revenue, while its branded consumer segment contributes about 69 per cent.

The second thing that the company has done and will continue to do is to focus on its regional strategy in Asia.

Mr Darren Teo said that Super is in the top three in several instant coffee markets, including Myanmar, Thailand and Singapore.

In fact, its dominant presence in Myanmar is part of the reason analysts have become excited over the stock.

The company has been in Myanmar for over 15 years, building a strong distribution network with a partner based in the country.

"The country doesn't have many supermarts or hypermarts and a lot of the shops are mom-and-pop stores. So we took a long time to build our presence and sell directly to them," said Mr Teo.

And he is confident that its first-mover advantage and strong network in the frontier market will be enough to ward off increasing competition from other international brands, such as Nestle, which is also eyeing the market.

"Even if you had the money, it would be difficult to build the network we have," he said.

For now, the company is focused on increasing its presence in the region, including China.

"There's a lot of potential in the low- to middle-income group, which sees coffee as a luxury item. And that's where we want to be, where growth is strongest," said Mr Darren Teo.
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SOmeone told me about the company when it was close to $2 late last year. Didn't read out more...

Oh a 50% big miss...
I like this company a lot, too bad it now trades at very high earnings multiples, no chance to pick up
(07-01-2013, 10:58 AM)felixleong Wrote: I like this company a lot, too bad it now trades at very high earnings multiples, no chance to pick up

Too much hype IMO.
(07-01-2013, 11:07 AM)Share Investor Wrote:
(07-01-2013, 10:58 AM)felixleong Wrote: I like this company a lot, too bad it now trades at very high earnings multiples, no chance to pick up

Too much hype IMO.

It is in my watch-list and closely monitoring...

I agree that it is over-valued due to hyped as Myanmar play
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡

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