Viz Branz

[freedom]

result announcement?

father-son settlement?

hope not a takeover offer.

[freedom]

good result and good dividend.

[axt]

http://info.sgx.com/webcoranncatth.nsf/V...300161244/$file/VBHYResults.pdf?openelement

Cash plus FD inceased to 52,871,000 which made up approx 46% of current price of 0.32.
Dividend declared up from 0.0075 to 0.01.

[freedom]

http://info.sgx.com/webcoranncatth.nsf/V...300161244/$file/VBHYResults.pdf?openelement

Cash plus FD inceased to 52,871,000 which made up approx 46% of current price of 0.32.
Dividend declared up from 0.0075 to 0.01.

don't forget the 0.3 cent paid before CNY. total 0.013.

[dydx]

I can already see a few early happy faces here! This is understandable, as Viz Branz's 1H results are really quite good, and the higher 2nd-Interim dividend at $0.01/share (vs. last FY11: $0.0075/share) is great! This is especially so since a $0.003/share Ist-Interim dividend was only paid on 16Jan12.

Based on 1H's NP at $9.275m, I guess it is reasonable to expect Viz Branz to raise its FY12 (ending 30Jun12) full-year NP to a new record of $19.0m, which will translate into a full-year EPS of $0.0535 (based on the latest 354.997m outstanding issued shares).

I think it is also relevant to note that while NP is up, due to good credit management and collection as well as reduced capex, Viz Branz's net cash reserve is also fast increasing - it has reached $28.12m, or $0.079, as at 31Dec11.

[dydx]

Since announcing a set of good 1H results on 13Feb12 (mid-day), Viz Branz has advanced $0.025 from $0.315 (last done 30Jan12) to close at $0.34 today (15Feb12). In fact, today the volume done at 390 lots was quite high, and the counter actually hit an intra-day high of $0.35.

At $0.34, and based on Viz Branz's latest 354.997m outstanding issued shares, Mr Market is now attaching a market cap. of $120.7m on this established, steadily growing and profitable FMCG enterprise. Assuming Viz Branz can deliver a full-year FY12 (ending 30Jun12) NP of $19.0m, Mr Market is now valuing this enterprise at a current-year prospective PER of approx. 6.4x only. IMHO, this doesn't look quite adequate! Would a PER of say 10x be more appropriate? Any views from fellow forumers who are experienced and involved in FMCG products?

[shanrui_91]

Coffee is a rather competitive market in Singapore though it has been enjoying healthy growth for the past few years.. While many will have thought of Super, Gold Roast and Food empire, many forget that there exists a very strong food and nutrition MNCs as the market leader. Other than these companies, there's still Owl and Old Town.

Gold Roast's local market share is much smaller than many think it is. I feel that the reason why profit has been growing is largely due to overseas market and not the local market. I think that local market accounts for at most 10% of its total revenue.

[freedom]

Coffee is a rather competitive market in Singapore though it has been enjoying healthy growth for the past few years.. While many will have thought of Super, Gold Roast and Food empire, many forget that there exists a very strong food and nutrition MNCs as the market leader. Other than these companies, there's still Owl and Old Town.

Gold Roast's local market share is much smaller than many think it is. I feel that the reason why profit has been growing is largely due to overseas market and not the local market. I think that local market accounts for at most 10% of its total revenue.

if you have read their annual report, you would have realized that most of its profit comes from PRC. Its revenue, half in SEA, half in PRC. Singapore market probably contributes little or none or negatively to its bottom line.

[shanrui_91]

didn't look into the annual report, but from the previous few posts i can see that a few are looking too much into it's performance in the local retail scene

[setan]

The last AGM I attended and spoken to the chairman regarding profit margin compare with it's competitors.

That was what I was told -----

The profit margin for coffee is razor thin and you are right it is very competitive. The cereal products are the better margin one.

Besides, PRC is the main market for the company and they are only concentrate on a few provinces only. Some shareholders ask the question why didn't the company expand their sales to other provinces.

The chairman told them it is very easy to sell in PRC and grow the revenue many times. However, when come to collection of money, you may run into problem ie. you will incur high bad debt. So they just concentrate on a few distributor which they know very well and confident they are creditable.

Another question raised was why was there a few times dividend last year. The answer was last year they shortened the credit term and there is a lot of cashflow coming in and they did not forsee any cap ex in the near term.

From the above, my personal opinion is that the management is very experience in doing business in PRC.

Just to share with those interested.

Vested