Apollo Food Holdings (6432)

I just finished scanning through Apollo financial reports as suggested by ZL, Apollo indeed a good stock.

"While RY is into FOOD STOCK, ZL suggest you give 

APOLLO a run over. This wafer and biscuits manufacturer is improving y-o-y.
If RY intend to put up a portfolio here pls include APOLLO as ZL's recommendation."

Apollo Food Holdings Berhad is engaged in the manufacture of and trading in compound chocolates and chocolate confectionery products and cakes. Thier brands such as Apollo Layer Cakes and Apollo Roka are well known products in Malaysia. Apollo derives almost half its sales turnover from overseas, to over 50 countries and still expanding. Revenue from Malaysia increased by 5.12% while overseas has increased by 33.1%.

Current Price 2.35

PE 9x

Last yeaar DPS 0.25

Revenue +13.6%

Profit -27.2%

cash per share 0.41

Other current assets ps 0.60

total liabilities ps 0.29

Net asset ps 2.33

total assets +2.95%

total liabilities +2.14%

Revenue has inreased by 13.6% but recorded a lower profit due to increase in cost of materials and allowance for diminution of value in investment provided. Cash per share decreased from 0.608sen last year due to higher investing activities.The total cost and book value of the quoted shares held by Apollo was RM11.69million . Overall, balance sheets looks good since cash per share alone is higher than debt per share!.Mamee dont have this advantage. No dividend was declared during last 1st and 2nd qtr reports probably due to lower cash flow than before, but apollo always paying a generous dividend. I'm expecting a lower DPS , probably around +- 0.20 but still higher than FD rate of course.Would be nice if they could maintain DPS.DPS last year was 0.25sen!.  

As ZL mentioned, consumer staple industry is inflation proof business.Plus, with explosive growth potential in overseas market, i agree Apollo is worth buying. currently trading close to NA value  with low downside risk since trading PE below 10 and protected by high dividend yield. I think 2.20~2.25 is a good buy?