Super Grp

Super Grp: UOB Kay Hian maintains Buy with $4.54 TP. House upbeat on the group’s rebranding exercise and push into China’s coffee market. Expect the rebranding exercise to refresh its brand positioning as well as enhance its pricing power in the medium term. The rebranding exercise has enjoyed high visibility, particularly amongst the younger consumers, which house believe is critical in the long term. Overall, house maintain BUY on Super with TP of $4.54, implying a 22.1x FY13 P/E, which is at the high end of the stock’s historical PE range of 7-24x since 2003. Despite the high valuation, believe its improving brand positioning, strong cashflow, solid execution and market share in selective growth markets such as Myanmar and the Philippines as well as China venture put it on a new growth trajectory.