Del Monte Pacific: CIMB visited Del Monte Pacific recently for an update post its 4Q16 results.
- DMFI lost US$5.4m on a core basis and was in negative operating cash flow.
- DMPL continues to gain strength in the Philippines and the S&W brand did well.
- 1Q17 could be loss-making as this is a seasonally weak quarter. DMFI may need another 2 years to realize full potential.
- Still targeting preference share issuance by end 2016. Investors should not hope for a repeat of the 1.33 UScts DPS if the preference share issuance is successfully completed.
- CIMB maintains Buy with TP of $0.38