Petra Foods

Petra Foods: DMG initiated coverage on Petra Food with Buy rating and street-high TP of $4.50, flagging - Exposure to two most important ASEAN growth markets, Indonesia and Philippines - Potential earnings-accretive acquisitions with war chest of US$250m, organic growth opportunities in China and Vietnam - More stable IDR Highlighting the first point, Petra owns Indonesia’s household brand name SilverQueen, and enjoys 10% market share in Philippines making it the top 5 players. The valuation of $4.50 is priced at premium to Indonesian peers, with DMG finds justified by its excellent management track record and purer exposure.