Super Group said that it hopes to boost revenue from industrial customers to 40% of the business in 3-4 yrs from the current 10%. Notably, the Co is adding a third non-dairy creamer production line at its China plant which will boost output by 50% to 75k tons. We note that this division accounted for S$31m in sales or 10.5% of total revenue in FY09. Super's chairman, David Teo highlights the expansion will help it meet strong industrial demand espeically from China and Taiwan.
Based on KE estimates, the stock is trading at about 10x FY10 core P/E, which is undemanding against its listed peers in HK. The co is in the process of applying for dual listing in Taiwan.
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