12-08-2013, 02:21 PM
Hi Chris,
Any thoughts on why the price has slid back down? Can't see any reason for the slide since March of this year.
Cheers,
Ian
Any thoughts on why the price has slid back down? Can't see any reason for the slide since March of this year.
Cheers,
Ian
(10-12-2012, 03:28 PM)VIChris Wrote: [ -> ](10-12-2012, 02:16 PM)Share Investor Wrote: [ -> ](10-12-2012, 11:53 AM)guru Wrote: [ -> ](10-12-2012, 11:02 AM)cyclone Wrote: [ -> ]There are several well-known instant noodle brands in Indonesia : Indomie, Supermi, Sarimi, Mie Sedaap, Salam Mie, Mi ABC, Mie Kare, Alhami, Sakura Mi Instan, and Gaga Mie.
Indomie, Supermi, Sarimi, Sakura are produced by Indofood Sukses Makmur. Mie Sedaap is produced by Wings Food.
These 2 instant noodle producers probably get 95% market shares ??
I think they did mention somewhere Conscience has about 4% of the market. For them to go against the jaggernuts like Indofood will not be easy. But the market is definitely growing in Indonesia. Besides the organic growth in instant noodles, will be good for the Company to articulate their strategies too.
Management did mention that one of the main focus is to develop beverage which can generate more income than instant noddle on a per unit basis. However, how good the company can execute this initiative remains to be seen.
One thing I am not too sure is why company goes for loan for expansion when they have the cash.
I've done some research in this company before and vested(previously).
Even thought the PE looks very attractive, the company is not performing as expected in the last 2 quarters.
Indonesia, in general is still a poor country and local population do mix instant noodle with rich as a staple food as they can't afford purely rice.
Looking this industry, Pricing will be an important factor, which will influence the market shares and this is where Conscience Food market segment is.
So far, I do not see them having a strong economic moat:
a. Any price reduction in their competitors will erode their market shares.
b. Cost of raw material increase will affect their cost which is difficult to be passed down to consumer.
In addition, there is not much transparency and information about their management except those posted in SGX and some info which were featured at some security firms' research report and forum.
No dividend and AGM been called in SG for the past 2 years.
You decide whether to invest.
My 2 cents