Mamee's instant noodle holds 13 per cent of the total market share in the country. Thanks to heavy ad and marketing stratergy , Mamee brand value as valued by interbrand now worth RM87million, more than half of its market cap. I don't see any obstacle for them to capture 15~20% of total market share in our country.Other than instant noodles, Mamee also manufacture a wide range of products including snacks, Dairy product and F&B products. (i like thier mamee monster and mister potato ;) Mamee also had reformulated its noodle snack, Mamee Monster, in response to the Health Ministry's call for healthy lifestyle.A very good move.The snack was approved for sale in Australian schools by the health departments of New South Wales, Queensland, Victoria and South Australia.Mamee market now expending not only in Malaysia but also in overseas market.During the year ended December 31, 2007, the Company acquired additional 40% interest in Mamee-Double Decker Foods (Suzhou) Co. Ltd and Myanmar Mamee-Double Decker Ltd.
Current Price=1.80
PE=8.86
Dividend Yield=5.6%
3rdq08 vs 3rdq07
rev +3.8%
profit +39.4%
cash -25.0%
oter current assets +25.9%
NTA 2.15
borrowing -100%
total liabilities -12.9%
cash per share 0.39 (-30.4%)
other current assets per share 1.26 (+18.5%)
total liabilities per share 0.81 (-18.5%)
Overall, the balance sheet looks stable.Dividend yield also quite attractive enough, higher than FD rate! Sales in world fastest growing market,China increased by 75.5%.Cash per share decreased due to higher working capital.Inventories up 10.9% while recievable up 34.3%.payable incresed only 2.9% and zero borrowing recorded in last quarter.I'm expecting a higher EPS for this year..0.24~0.25. TA wise, mamee has broken above its downtrend line and currently trading below it's NTA value. I will continue monitor this ctr closely. Hope i could buy below 1.60 or maybe 1.50. a good buy or a good bye?
YES ry,
ReplyDeleteMamee is a SLUURRPPPPING GOOD stock. During hard times like nowadays (and it's gonna get worse, so it seems) consumers will eat out less nowadays. Instant noodles may not be a luxurious meal but many lower income consumers do not posses the option of supper in a restaurant.
Other than instant noodles, Mamee also produces a well known snack DOUBLEDECKER crunchy crips.
Food producers are inflation proof business. Even when one is sick or broke, u still have to find "food money." So sad but so true.
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.
TQVM
Thanks ZL. I agree 'mamee' kind of industry, consumer staple, a recession proof business.
ReplyDeleteBtw, i just finished scanning through Apollo's reports. Appollo indeed a good recommendation with cash per share alone higher than debt per share. Mamee don't have this advantage.