Super Coffeemix Manufacturing . Price .71 SGD, NAV 0.42, PE 14, P/S1.9, ROE 13.7, P/CF 11, LD/E 0.01, Yield 3%. Makes instant beverages (tea/ coffee ready mix) and convenience foods . Has been on my to research list for a long time, somehow I assumed the company had gone private and I forgot about them. Looks like it is still trading. See messageboard. Nice Annual Report , see quarterly report, and here. Sinagpore Exchange sponsored research reports are here .
From the reports we have
- 39,300,000 new ordinary shares were issued to CIM II Pte Ltd at S$0.60 per share, and
- 10,000,000 new ordinary shares were issued to Quek Chee Hoon at S$0.60 per share.
Post issue total shares are 542,542,980 and also we have 900,000 options issued to management.
My guess would be that if management think that S$0.60 is a good price to inject fresh cash then we can consider that to be a good price to buy.
Company has grown sales and gross income June end quarter by nearly 25%. Net profit skewed by other income from property sales. According to Shares investment No 301 Company has been profitable and paid dividends while growing sales and profits since records start from year end 2003. Possible negative is diversification into property development in Jiangsu China.
So it looks like a stable dividend paying and growing company in a defensive business, Reuters give long term D/E of 0.01. It does not pass my high ROE or low p/book screen but I can make an exception if the price is right as signaled by insider buying. Insiders seem happy to buy in the open market at S$ 0.83, price has fallen since then. Am thinking of placing an order.
I have tried their products. My office used to provide their instant tea packets in the cafeteria, the stuff is not great, but it is convenient, instant food will be with us for along time. Am off to make some instant coffee. Noted that its products are stacked in supermarkets and 7/11 stores right next to Nestle equivalents, so it seems to be holding up against the multinationals.