F&B/Hsu Fu Chi: Shares of Hsu Fu Chi remain susp at $4.00 after the Chinese candy maker confirmed it is in preliminary discussions with Nestle in what could be one of the biggest foreign takeovers of a Chinese company. DMG reckons the news flow will be positive for SGX-listed consumer players with well-established brand names, which on average trade at 15x FY11F P/E and 2.5x P/B.
Cites these beneficiaries would include Consciencefood (Buy with $0.39 target), Super Group (Neutral with $1.30 target) & Eu Yan Seng (Buy with $0.99 target). Adds other beneficiaries could include Cerebos & Petra Foods.
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