Sozo Global

Sozo, listed on Bursa Malaysia last year, operates through its subsidiary, Rizhao Hengbao Foodstuffs Co., Ltd., a one-stop gourmet convenient food specialist specializing in ready-to-serve (RTS) duck meat products. The Company products are RTS food, which comprises of pre-cooked gourmet meat or meat with vegetable products that are either frozen or vacuum packed; frozen vegetables, which comprises of pre-cooked vegetables and fresh vegetables that are frozen; canned food, which comprises of pre-cooked and fresh seafood, vegetables and fruits that are canned, and others, which comprises snacks and asparagus tea products. Its products are marketed under the brand names of Geleifu (Green Food), Hengbao Food and The Four Seasons Farm.

Overall, their net profit and revenue shows a steady growth yoy, but its too early too judge whether they are going to sail as good as previous as this company just listed, so its very hard to make a clear judgment. Anyway, looking at balance sheet, i can say its very healthy and currently sitting on net cash per share of RM0.49 with PE less than 5. RTF and frozen vegetables contributes a big chunk of their earning with good gross margin, >20%

Current price = RM0.885

PE = 4.45!!

Net Asset per share = RM0.64

Total Asset per share = RM0.72

Total Cash per share = RM0.56

Total Liabilities per share = RM0.08

Total Payable per share = RM0.04

Total Net Cash per share = RM0.49!!

Impressive eh. They did mention that they going invest on new manufacturing plant in Malaysia to cater for Global Halal market, very ambitious but good vision as i believe Halal market is very huge market. Back in mainland, the target to increase market share in business in their homeland is a positive news. If they can deliver a strong execution towards this vision, then SOZO is a good bet, but still too early to put money in them. The problem with SOZO, just like other small China listed company, SOZO facing lack of confident. They should engage more actives with analyst & shareholders, and improve the official website, if they are really serious on their words.

Will monior their development from now on.