Super Group

Super Group: 4Q13 results will be released on 24 Feb. Meanwhile in a recent rpt by Maybank KE, the house view that the worst may be likely over for Super, based on its latest channel checks. Following a 15% drop in share price since its disappointing 3Q13 results last Nov, the house upgrades Super to a Buy (from Hold), albeit with a slightly lower TP of $4.45 (from $4.55). Key findings are as follows: 1) Myanmar: Maybank KE expects sales volumes in its second-biggest market to return in 4Q13, as local kyat currency stabilizes. 2) Philippines: Channel checks suggest that end-user demand remains healthy and some of the previous headline sales decline was due to de-stocking. 3) Non-dairy creamer: Maybank KE expects the decline in demand to be overcome in the next one to two quarters as management diversifies its customer base. In view of the above, Maybank-KE expects Super’s FY13 results (due end-Feb) to post an 8% y/y increase in revenue to $561m, and a 10% rise in recurring net profit of $85.5m. The house continues to like Super for its longer term growth story, even if weakness should persist for another one to two quarters.