Food Empire

Food Empire: OSK DMG is the only house which covers Food Empire and has a BUY rating, with TP of $0.84. Edge noted that Group is moving up-stream in its non-dairy creamer plant in Iskandar, as well as a coffee plant in India's Andhra Pradesh, to mitigate the fluctuating raw material costs. Iskandar's new production capacity supersedes internal needs (its usage in MacCoffee 3-in-1 sachets) with 70% of the capacity for external sale. Group recently launched MacCoffee in Myanmar, partnering with Yoma Strategic to organize the Yoma Yangon International Marathon. MacCoffee competes with SGX-listed Super and Viz Branz in the instant-coffee segment. West-Africa is next-in-line, with an expansion into Nigeria; Group cites the flood of investments from the Chinese govt. Food Empire's manufacturing facilities are located in Russia and Singapore, and most recently in Ukraine- which Food Empire intends to supply products to, as well as other markets in Eastern Europe. Food Empire currently trades at 14.6x trailing P/E; 1.9x P/B