Petrafoods

Petrafoods: OCBC notes that Petra Foods’ continuing operations’ fundamental growth in FY13 is stronger than reported due to IDR depreciation. Stripping the depreciation, we estimate that FY13 PATMI would have increased 17% to US$63.6m (versus 9.1% to US$59.3m reported). We understand from management meeting that its product launches are consumer-oriented and country-specific, which we think will continue to deliver growth ahead. A potential re-rating catalyst is overseas brands acquisition with its US$164m net proceeds from its Cocoa Ingredients division sales to jumpstart market penetration. House raise FY14 forecasts (denoted in USD) as IDR depreciation shows sign of abating. Maintain BUY with new fair value estimate of S$4.08 (previous: S$3.95)