Petra Food debuted on SGX on 4th Nov 2004 @ IPO price of S$0.83.
Almost 8 years of listing, Petra had grown from a company of S$441 million to S$1,399 million in terms of market capital.
Petra is headquartered in Singapore and its principal operations are in Indonesia, Malaysia, the Philippines, Thailand, Brazil and Mexico. It has six cocoa processing facilities located in Bandung (Indonesia), Bulacan (the Philippines), Chachoengsao province (Thailand), Bahia (Brazil), Mexico City (Mexico) and Johor (Malaysia). The Group also has two chocolate confectionery production facilities in Bandung (Indonesia) and Klang (Malaysia). Guan Chong Berhad, an investment holding company, engages in manufacture and trading of cocoa-derived food ingredients and cocoa related products in Malaysia. The company offers cocoa butter, cocoa cake, and cocoa liquor. It also provides chocolate related products and confectionaries. In addition, the company is involved in the purchases and distribution of cocoa derived food ingredients; and trading of cocoa beans, cocoa derived food ingredients, and cocoa products.
JB Foods was incorporated in Singapore on 3 January 2012. The principal activities of the Company and its subsidiary (the “Group”) comprise the production and sale of cocoa ingredient products, namely cocoa butter, cocoa powder, cocoa liquor and cocoa cake. Cocoa powder and cocoa butter are the two key products that comprise more than 90 percent of the total revenue for the financial years ended 31 December 2009, 2010 and 2011.
The Group’s cocoa processing plant is located in Pelabuhan Tanjung Pelepas, a free trade zone in Johor Bahru, Malaysia. All the products are manufactured under stringent food safety standards and sold primarily under the “JBCocoa” brand name. The products are exported worldwide to customers ranging from international trade houses to end users such as food and beverage and confectionery manufacturers.
Now looking at the financial figures, Petra Food seems relatively expensive. Being the world 2nd largest cocoa processor company of 370k MT, investors are willing to pay a premium over its valuations.
On the other hand, Guan Chong is the world 5th largest processor of 170k MT, trading at slightly less than half the valuation of Petra Food. Guan Chong is seeking a dual listing on SGX and on Bursa Malaysia. I am of the view that by listing in SGX, Guan Chong can fetch a higher valuation.
Lastly, JB Foods listed in July 2012 on SGX, at a low valuation comparing to its peer. With a processing capacity of 60k MT, JB Foods is the smallest among these 3 listed companies. JB Foods raised S$22million during this IPO, and will be using S$8.3 million to repay bank loans and S$14 million to fund any potential acquisitions.
Its book order is 50k MT which will last till end of 2013. JB Foods will be declaring at least 30% of its net profits for FY2012, estimated to be 1.98 sing cts. Based on closing price on 8th Aug of 31cts, it will be about 6.3% yield. At current valuation, i personally think it is low, and can potentially trade much higher valuation once Guan Chong list in Singapore.
My personal target is 7x or 46cts.
Almost 8 years of listing, Petra had grown from a company of S$441 million to S$1,399 million in terms of market capital.
Petra is headquartered in Singapore and its principal operations are in Indonesia, Malaysia, the Philippines, Thailand, Brazil and Mexico. It has six cocoa processing facilities located in Bandung (Indonesia), Bulacan (the Philippines), Chachoengsao province (Thailand), Bahia (Brazil), Mexico City (Mexico) and Johor (Malaysia). The Group also has two chocolate confectionery production facilities in Bandung (Indonesia) and Klang (Malaysia). Guan Chong Berhad, an investment holding company, engages in manufacture and trading of cocoa-derived food ingredients and cocoa related products in Malaysia. The company offers cocoa butter, cocoa cake, and cocoa liquor. It also provides chocolate related products and confectionaries. In addition, the company is involved in the purchases and distribution of cocoa derived food ingredients; and trading of cocoa beans, cocoa derived food ingredients, and cocoa products.
JB Foods was incorporated in Singapore on 3 January 2012. The principal activities of the Company and its subsidiary (the “Group”) comprise the production and sale of cocoa ingredient products, namely cocoa butter, cocoa powder, cocoa liquor and cocoa cake. Cocoa powder and cocoa butter are the two key products that comprise more than 90 percent of the total revenue for the financial years ended 31 December 2009, 2010 and 2011.
The Group’s cocoa processing plant is located in Pelabuhan Tanjung Pelepas, a free trade zone in Johor Bahru, Malaysia. All the products are manufactured under stringent food safety standards and sold primarily under the “JBCocoa” brand name. The products are exported worldwide to customers ranging from international trade houses to end users such as food and beverage and confectionery manufacturers.
On the other hand, Guan Chong is the world 5th largest processor of 170k MT, trading at slightly less than half the valuation of Petra Food. Guan Chong is seeking a dual listing on SGX and on Bursa Malaysia. I am of the view that by listing in SGX, Guan Chong can fetch a higher valuation.
Lastly, JB Foods listed in July 2012 on SGX, at a low valuation comparing to its peer. With a processing capacity of 60k MT, JB Foods is the smallest among these 3 listed companies. JB Foods raised S$22million during this IPO, and will be using S$8.3 million to repay bank loans and S$14 million to fund any potential acquisitions.
Its book order is 50k MT which will last till end of 2013. JB Foods will be declaring at least 30% of its net profits for FY2012, estimated to be 1.98 sing cts. Based on closing price on 8th Aug of 31cts, it will be about 6.3% yield. At current valuation, i personally think it is low, and can potentially trade much higher valuation once Guan Chong list in Singapore.
My personal target is 7x or 46cts.
Comments