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31-05-2015, 02:26 PM
(This post was last modified: 31-05-2015, 02:29 PM by greatgrowth.)
Hi Guys,
Just so happen that I chanced upon this company. PWR manufactures "Ah Huat" white coffee. Have some similarities business model from Singapore listed Super Group.
Co is engaged in the manufacture and sale of beverage products, with the bulk of revenue from M'sia. The export market relates to sales to overseas customers with Middle East Asia (China, SG, HK, Indonesia) being the principal market segment. Their products are sold in more than 30 countries. The beverages include instant mix coffee/tea or ready-to-drink drinks like coffee, chocolate malt or herbal energy drinks. Co derives sales from health supplement using direct-selling model in M'sia & Indonesia as well.
Valuation looks slightly steep from PER at 15.9, but PEG (based on 5 year) looks decent at 0.51 despite the share ramp up in price to RM2.10.
Consecutive 5 years increase in profit & revenue.
Has good dividend payouts (as a % of profits) as well over the 5 years with minimal bank borrowings, which means cash flow is relatively decent.
Main difference is that PWR is much smaller player and does direct selling in Indonesia, something which Super Group did not do.
Super Group divides their operations clearly into Branded Consumer segment, Food Ingredients & Others (mostly involved in food manufacturing & distribution) while Power Root is more of Food Manufacturing & direct-selling business.
What are some of your opinion on this co?
PWROOT-Cover to Page 14 (2014).pdf (Size: 2.11 MB / Downloads: 2)
PWROOT-Page 15 to ProxyForm (2014).pdf (Size: 2.41 MB / Downloads: 1)
Just so happen that I chanced upon this company. PWR manufactures "Ah Huat" white coffee. Have some similarities business model from Singapore listed Super Group.
Co is engaged in the manufacture and sale of beverage products, with the bulk of revenue from M'sia. The export market relates to sales to overseas customers with Middle East Asia (China, SG, HK, Indonesia) being the principal market segment. Their products are sold in more than 30 countries. The beverages include instant mix coffee/tea or ready-to-drink drinks like coffee, chocolate malt or herbal energy drinks. Co derives sales from health supplement using direct-selling model in M'sia & Indonesia as well.
Valuation looks slightly steep from PER at 15.9, but PEG (based on 5 year) looks decent at 0.51 despite the share ramp up in price to RM2.10.
Consecutive 5 years increase in profit & revenue.
Has good dividend payouts (as a % of profits) as well over the 5 years with minimal bank borrowings, which means cash flow is relatively decent.
Main difference is that PWR is much smaller player and does direct selling in Indonesia, something which Super Group did not do.
Super Group divides their operations clearly into Branded Consumer segment, Food Ingredients & Others (mostly involved in food manufacturing & distribution) while Power Root is more of Food Manufacturing & direct-selling business.
What are some of your opinion on this co?
PWROOT-Cover to Page 14 (2014).pdf (Size: 2.11 MB / Downloads: 2)
PWROOT-Page 15 to ProxyForm (2014).pdf (Size: 2.41 MB / Downloads: 1)