Del Monte

Del Monte: CIMB notes the possible valuation uplift, maintains OUTPERFORM and increases TP to $1.07. Del Monte is currently on the road promoting its planned dual listing in the Philippines. If successful, its share price could react positively as valuations are favourable and there could be increased interest in the stock. Its share price has gained 14% since its announcement of a dual listing on the Philippine Stock Exchange. The dual listing will likely involve the sale of vendor shares, potentially diluting major shareholder NutriAsia’s stake to 67.01%. This may not immediately help liquidity in Singapore but could lead to greater research coverage and create an additional pool of investors in the Philippines. Its planned dual listing could well be a short-term catalyst, with longer-term catalysts from branded sales growth. While consumer stocks appear to have hit peak valuations, they should continue to attract interest. This is especially so for small-cap consumer stocks with better earnings predictability.