Super Group

[Ray168]

IMO, the DCF valuation is very attractive,
but we can't ignor that the PE ratio is high (PER 33).
The PEG now is 1.32 (>1)

[greengiraffe]

DCF is the worst type of valuation yardstick and usually associated with bull mkt scenario...

GG

IMO, the DCF valuation is very attractive,
but we can't ignor that the PE ratio is high (PER 33).
The PEG now is 1.32 (>1)

[Musicwhiz]

Somehow PER of 30x reminds me of the days back in 2007 when an analyst also accorded the same PER for Synear Foods. Well, we know what happened to Synear after that.

That said, to be fair, Super Group is completely different from Synear Foods, even though both are in the F&B industry.

[paullow]

hehe. to pple like sam goi, it does not matter. he bot quite a large stake well below 50c ages ago. 10bagger for him.
learning pt is to buy deeply n hold fundamentally gd stocks.

[CityFarmer]

DCF is the worst type of valuation yardstick and usually associated with bull mkt scenario...

GG

Well, i will go against the guru this round. DCF is the most reliable valuation IMO. Most of the over-valuations are overly optimistic on FCF projection.

[greengiraffe]

DCF is the worst type of valuation yardstick and usually associated with bull mkt scenario...

GG

Well, i will go against the guru this round. DCF is the most reliable valuation IMO. Most of the over-valuations are overly optimistic on FCF projection.

I m a lousy student... all i know once the discount rates differ, valuations will go wild. How you derive the discount rates is more an art than a science.

During my analyst days, this is the last yardstick that I will adopt. PER on the other hand seems easier even though there are limitations.

GG

[CityFarmer]

Super HY result was announced. Super Group is in my watch-list, but never hit my target price so far...

The result presentation slides
http://infopub.sgx.com/FileOpen/Super-2Q...eID=251662

 Sales up 23% YoY to S$138.3m for 2Q13; up 16% to S$270.8m for HY13
 Net Profit up 106% YoY to S$37.4m for 2Q13; up 65% to S$60.3m for HY13
 GPM improved to 39% for 2Q13
 Enhanced earnings per share, up 109% YoY to 6.55 cents for 2Q13

Net profit up approx 5 time more than sales, with gross margin up by 3% and net profit margin up by 6% YoY. EPS jump more than 1x. Wow...

[dzwm87]

That's due to one-off gain in its sale of an associate. Strip that off, it should be close to revenue growth of 20%-odd.

Still quite a good performance but not so impressive to justify its valuations.

Take a look at its CCC days - it's terrible!

[CityFarmer]

Review report on Super Group HY result...

Super Group’s Q2 net profit surges to $37.4 mil

Super Group, the integrated instant food and beverage (F&B) brand owner, said it posted a 106% rise in net profit to $37.4 million for the three months ended 30 June 2013 (2Q13).

Earnings per share rose to 6.55 cents from 3.14 cents.

Sales increased 23% to $138.3 million in 2Q13, from $112.0 million a year ago. Branded Consumer sales for 2Q13 registered robust y-o-y growth and recovery from 1Q13’s marginal growth of 1%. 2Q13 posted 10% sales growth to $92.4 million y-o-y compared to 2Q12’s $84.3 million. Higher sales were registered from key Southeast Asian markets of Myanmar, Malaysia, Philippines and Thailand. The increase was further boosted by higher sales to other Southeast Asian markets like Indonesia, Vietnam and Cambodia.

Food Ingredient sales achieved 65% growth for 2Q13 to $46 million from 2Q12’s $27.8 million. The growth was supported by increased production capacity and continued robust demand for soluble coffee powder and non-dairy creamer from the Asian markets.

Gross profit margin for 2Q13 improved 3 percentage points to 39% due to effective cost management and enhanced operational efficiencies arising from increased production capacity.

http://www.theedgesingapore.com/the-dail...4-mil.html

[Tiggerbee]

Super should be announcing their Q3 results in early November. Stock is currently trading at about 21x trailing PE. The stock price hit a low of $3.72 during the June correction and then hit a new high of $5.05 after earnings was out. Let's see if the market presents any buying opportunity in the next 4 weeks.