Super

Super - No co. specific news on Super's drop, although note that share price had a good run from the last two weeks, coming up from a low of $3.90. So do not rule out some profit taking on the counter. Maybank-KE currently has a Buy call on Super with a TP of $6.00, highlighting that while China branded consumer sales currently account for less than 5% of Super’s total revenue (largely through instant cereal), this huge market has the potential to become a significant contributor over the next two to three years. Super recently expanded its product offering in China, with the launch of coffee products in Aug. According to management, sales orders and reception to its new coffee products were very positive in a trade fair attended by more than 1,000 regional distributors. While China is still predominantly a tea-drinking country, coffee consumption has been picking up, driven mainly by a younger generation influenced by the Starbucks culture and constant marketing. The coffee segment is expected to grow at a healthy 12% clip on average over the next five years, and the time is ripe for Super to capitalize on this expected growth without overinvesting.