Super Grp: To invest RM138m in botanical herbal extraction business in Johor Bahru and was awarded "Pioneer" status with tax incentives by Msia authorities. Tax incentives will for 5 yrs and Super Grp has made a request for another 3 yr extension subject to approval. The production capacity installed will be capable of up to 3k tons but the first phase will be approx 1.5k tons. The extraction process encompasses microfiltration and low temperature concentration with a recovery and drying process. The initial ingredients used will be Chicory, Green Tea, Black Tea, Tongkat Ali, Ginger, Chrysanthemum, Prunella and Medlar. Co is of the view this is a complementary business to its consumer and ingredients segments and a niche market in the region and supports the long-term strategy to be an ingredient specialist in Asia.
RHB also initiates on Super with Outperform with TP$1.70 based on 14.5x FY12 P/E.
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