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Super Group Ltd - Soft outlook ahead

Written By Stock Fanatic on Tuesday, February 25, 2014

? FY13 results slightly ahead on better-than-expected gross margins ? Final !S of " Scents declared proposing 1 for 1 bonus issue ? #xpect $eaker gro$th outlook on soft demand% higher input costs ? &aintain '(L % )! S*+,-.

FY13 core earnings slightly ahead on better than expected gross margin FY13 core earnings came in at S*/1m 01"2 y-o-y3% slightly ahead of our forecast $hile re4enue of S*55"m 01"2 y-o-y3 $as in line $ith our expectations . Revenue growt was driven by Food !ngredient seg"ent #$1%& y'o' y, S(1)*"+, attributed to ig er sa,es to Sout -ast .sia, o//set by ,ower -ast .sia sa,es. Branded 0onsu"er revenue was S(*15" #$*& y'o'y+ due to weaker sa,es in key "arkets in 2yan"ar, T ai,and and 2a,aysia. 3ross "argins were s,ig t,y above our e45ectations as we be,ieve Su5er continued to draw down on ,ower 5riced inventories des5ite t e recent co//ee 5rice ra,,y. !S of " Scents declared 1 for 1 bonus issue proposed &anagement declared a final !S of " Scents% bringing full year !S to . Scents% representing a di4idend payout ratio of 5-2. Su5er a,so 5ro5osed a 1'/or'1 bonus issue. Reasons cited /or t e bonus issue inc,ude i"5roving ,i6uidity and broadening its s are o,der base. (ur 6ie$ Soft outlook ahead. .,t oug F71* earnings were s,ig t,y a ead, core earnings growt as dec,ined /ro" 1%& in 181* to '1& in 281*. To5,ine growt as s,owed on weaker consu"er de"and in .sean /or Branded 0onsu"er

rabica co//ee beans. robusta co//ee 5rices are . 9e see input costs e4entually increasing as coffee and palm oil prices bottom out. w ic as beco"e "ore e45ensive as a resu. But. 5ut 5ressure on "argins in F714F.ook is .sia /or Food !ngredient seg"ent.ieve revenue growt out. substitution e//ect /ro" . )echnical 7nalysis .ike. Furt er"ore.y to be so/t..t o/ t e recent droug t in Bra:i..y to see u5ward 5ressure going /orward .seg"ent and -ast .ike. consu"er de"and. co""odity 5rices wi.ed by 5otentia. we be. 9n t e back o/ weak regiona. Since 7pril 8-11% commodity prices ha4e fallen by as much as +-2.

9e maintain '(L $ith )! of S*+. we re"ain neutra.-. based on 8. on t e stock. 3iven t e so/t revenue growt out.x FY1+F earnings..-.ook and risks o/ "argin co"5ression. 0Read Report3 .Daily Chart :ecommendation &aintain '(L % )! S*+.

es s rank %& yoy #weak 0 ina contributions+ but F71* growt was sti.sia.ike. wit t e /or"erBs 10& yoy growt being driven by strong branding in sout ern T ai.. $*4& in 2012.54 0715 ?@-.es and /u.y 0 ina is /iring on a."ong t e new "arkets. 5re/erring to wait /or . integrated its non'dairy crea"er /aci.ed on currency e//ects. Sa.inders. we cut our F714'15 -?S by %')&.A currencies and natura.ower entry .e Singa5ore #4t + sa. . our target 5rice #sti.e 2a. we downgrade t e stock to a 8o. . or 2+ e4cite"ent over a 1'/or'1 bonus issue.ower as it e4ited t e vending and canned drinks business.argest "arket.es were .and.aysia #*rd+ continued to do we.es growt guidance /or F! is D15&. Food ingredients C S.eve.acing -ast . 40 40 Alert Admin Share price spurt un$arranted Su5er de.'year >?S to ) Scts #a.sia as engine 4=1* F! sa.ast session.argest "arket+ and 2a.es #15& o/ grou5+ grew *& yoy. . weaker . T ai.dd. in .er base+.3Rs but its growt as s..'year B0 sa.and and a 5us into t e nort . on. . /ina.S-. disasters in t e ? i.ine 4=1* but t e u5side is now . T us. To counter t e weak trends in -ast . T is division used to de.ity #to kee5 cost down+ and "oved to ig er va. Wit t e sa..beit /ro" a s"a..d /ro" an . based on 2*. cy..ients re5.Useful To Me Not Useful To Me 9anSi)ong Elite 25'Feb'2014 0).owered to 5'10& /or Branded 0onsu"er #B0+ and 15& /or Food !ngredients #F!+..ients 5ersisted in 4=.iver 10& 0. a.itica.and #.s.y in reaction to 1+ con/ir"ation o/ a se6uentia. T e *= trend o/ "ore S..4< Contact About WanSiTong Quote this Post! 2ood.so wit in e45ectations+. recovery a/ter a de5ressed *=.4& surge in t e .i55ines ave .ine wit Aest. good at $1%& yoy #vs. F71* net 5ro/it "et )<& o/ our /orecast and 101& o/ consensus. >?S o/ % Scts brings t e /u. .ivered an in'. <randed consumer $ill see slo$er gro$th 4=1* B0 sa..sian c.. 20& o/ grou5+ growt sta.i"ited a/ter a 5.aysia+ dro5s to S(4. Su5er as taken back its 0 ina distributors i5. w i.ue'add 5roducts.owed as 2yan"arBs #2nd . ?o.20.aces -ast ./ter an unwarranted 5rice surge..ower 5'10& growt guidance /or 2014.ed to a . uncertainty in T ai.sia re5.es growt guidance ..sian c.

7es.s see u5ward 5rice 5ressure.ower S3E .e.ci"b.e. .y /or 2 E .ike. t us kee5ing o5erating "argins stab.ders.y to 5er/or".ed Su5er to de. 5us t e s are u5. 5rices can be 5assed on to consu"ers. ?.current.i6uidity and reward .iver ig er o5erating "argins #201*.5d/ Useful To Me Not Useful To Me &arkie Member 25'Feb'2014 0<. 2anage"ent "aintains its view t at any uge s5ikes in raw "ateria.ower. . Branded 0onsu"er #B0+ and Food !ngredientBs #F!+ sa. t e "ore i"5ortant issue /or Su5er is ow we. T is cou. sugar and crude 5a. you can o5ine t at it wi. not too sure ow ig it can go.+ dri/ted . are antici5ated to surge due to a droug t and t at sugar and 0?9 5rices s ou. 1<.evated S3E . ! t ink t e reason /or bonus issue is 5robab. 2a. tt5s.es growt . costs in 201* #due to t e rebranding e4ercise+ cou. c anging trends in B0 and F! 3ross "argins ave "oved ig er in 201* as t e 5rices o/ a nu"ber o/ ingredients #co//ee.d be o//set by . We do not e45ect . 2argins s ou.0&.ts 5ro/its see" to ave stagnate.10 Contact About Markie Quote this Post! 40 40 Alert Admin .. 3iven t at co//ee 5rices in Bra:i. 11. we t ink t at t ey s ou. Matest resu. T ese trends ave enab.y about 2*.d a. we e45ect 2014 gross "argins to be .aysia and 0 ina.es are .d u5. Wit "argins e45ected to be stab.=onfident of sustaining margins W i.ike.<&+ even as it e"barked on a rebranding e4ercise in Singa5ore. We t ink t at t e guidance is 6uite reasonab. costs #5ost'201* rebranding e4ercise+.ong ter" s are o. 2anage"ent is guiding /or 5'10& B0 sa.es growt and D15& F! sa.e gross "argins were on t e u5trend in 201* as co""odity 5rices ca"e o//.e.y to e45and . 8owever." oi.@@brokingr/s. de5ressed s are 5rice is "ore .ower.d be ta5ering o//.. as e.co"@F-AorG0)sw' d0HI5AI4S0'5R' k4AWy6TJT873 1!2b40H?By<J*e0KL2B3oH S=)?1BJ2I>uJFco1. 2012.ower gross "argins to 5ose too "uc o/ a da"5ener on o5erating "argins.nyway. T atBs de/inite as itBs a 5iece o/ good news. because nobody wants to 5ay a ig 5rice /or any co"5any.d o.so edge u5.d weaken in 2014 as various raw "ateria.

d test (4 resistance to"orrow.21+ Wi.e o5inion ni ..ike.)0 is bu. Useful To Me Not Useful To Me u tea+++u 25'Feb'2014 01.. .ieve Ja5anBs Suntory "ay be "aking t e o//er i/ not IirinC ! read t at Su5er wi.is des5ite it being a doGi.bonus and dividends co"ing....4) Contact About superuser Quote this Post! 40 40 Alert Admin Su5er wi.ow (5 as t e stock reac ed t at 54 in . soonC i be.2* Contact About tea Elite Quote this Post! 2ood.d test (4 resistance to"orrow. # >ate..4)+ Su5er wi...dyodd.. Today c.. try to 5us t eir s are 5rice ig er so as to "ake it attractive /or any 2E .y waiting. a55i. 25'Feb'2014 01..ugust .ose N *.. S ou..)0 is bu.21 Contact About tea Elite Quote this Post! 2ood. Useful To Me Not Useful To Me superuser Member 25'Feb'2014 01. .ose N *. 25'Feb'2014 01. tea+++u ?osted. Today c.waiting waiting . 40 40 Alert Admin # >ate.is des5ite it being a doGi. Useful To Me Not Useful To Me u tea+++u 25'Feb'2014 01.... o/ course t e be. t ere be an 2 E .superuser ?osted.y not acce5t any o//er be...ow is Gust "y u"b.ast year. try to 5us t eir s are 5rice ig er so as to "ake it attractive /or any 2E . S ou...

downgrade Su5er to 8o.aysia and Singa5ore.itica. signa. t e ouse be. 5rices since t e beginning o/ t e year.and is e45ected to weig t on growt .ig ting a rat er "i4ed out.<4 F71* ?@. 9utside o/ its core "arkets o/ T ai.and re"ains in a net'cas 5osition o/ ()<..t current 5rice.54 Contact About WanSiTong Quote this Post! 2ood.ieve Ja5anBs Suntory "ay be "aking t e o//er i/ not IirinC ! read t at Su5er wi..ugust . a/ter Su5er reduced 5rices to its .avours were outso..d by "ore innovative co"5etitors. 2a.e to "ake a "aGor breakt roug in !ndonesia so /ar. 40 40 Alert Admin . Furt er"ore. t e grou5 is e45eriencing a setback a/ter a strong start to 201*.e. Proposed dividend of 7c. >es5ite i"5roved sa.uations.e wit growt c a.ieves growt is .. T e ouse e45ects severa. 2yan"ar. 3oing /orward.owered its growt target in t e branded consu"er seg"ent /ro" 10'15& to 5'10&. !n t e ? i.enges.ook does not Gusti/y current va..y to re"ain "uted wit out signi/icant increases in 5er ca5ita inco"e. as t e ouse 5ostu. . eadwinds to curb earnings growt going /orward ig . at a ti"e w en "argins are under t reat /ro" increasing raw "ateria.ates t at t e grou5Cs near'ter" out.ook in "ost o/ Su5erCs core "arkets. .ow (5 as t e stock reac ed t at 54 in .ike. a55i..ing intensi/ying co"5etition in e4isting "arkets.ike.y waiting.The Company proposes to undertake a bonus issue (" Proposed Bonus Issue" ) of new ordinary shares in the capital of the Company (" Bonus Shares" ) on the basis of one (1) Free Bonus Share for every one (1) existing ordinary share in the capital of the Company (" Shares" ) held by its shareholders (" Shareholders" ) as at a books closure date to be determined by the directors of the Company (" Directors" ) for the purpose of determining the entitlements of Shareholders (" Books Closure Date" ).d wit (*.. stando// in T ai. "anage"ent as .and.es in 2yan"ar during 4=1*.y not acce5t any o//er be. Useful To Me Not Useful To Me 9anSi)ong Elite 24'Feb'2014 14.5". Su5er continues to gra55.waiting waiting . 2aybank'I. t e on'going 5o.oca... 2. JL 5artners. wit revenue contracting by 40& y@y in 4=1*. as new co//ee /.ast year. t e grou5 as been unab. t ere be an 2 E .i55ines.. Su5er trades at 25..40 40 Alert Admin Wi. 2eanw i. 1.. soonC i be.%2 T?.