Petra Foods

Petra Foods: OCBC initiates coverage with a Buy rating and TP pf $2.98, based on 24x forward P/E. Highlights the group as one of the world’s largest producers and suppliers of cocoa ingredients and counts a stable group of F&B giants such as Nestle, Cadbury, Mars Group as its key clients. Its branded consumer division, contributes 30% of revenue and is a first mover into emerging Asia consumer demand. Given its competitive advantage via an extensive distribution network and strong brand equity, Petra Foods has achieved a dominant market share of more than 50% and 10% in the growing markets of Indonesia and the Philippines respectively. Combined, these 2 divisions form a formidable “twin-engine” growth strategy for the future.