Consciencefood   

IPO

DMG& Partner Securities

The news: Consciencefood reported a 40% rise in 2011 PATMI to Rp130.7b on the back of a 22% rise in revenue to Rp742.8b. Revenue rose on the back of an increase in sales volume as well as ASPs of their instant noodles. Other income increased by 66% to Rp1.2b due to higher sale for scrap materials. Administrative expenses decreased by 14% to Rp22.bn mainly due to IPO expenses incurred in 2010. Our thoughts: FY11 revenue of Rp742.8b was in-line with our expectations. Earnings however were ahead of estimates by 17% at Rp130.7b, largely due to higher gross margins of 29% vs our forecast of 26% and lower operating costs which led to net margins of 18% vs our forecast 15%. The Group announced that it has finalized the purchase of its beverage production machieneries for S$11m, which would be delivered by 1H2012 and set to commence production in 2H2012. We are reviewing our estimates.

 

 

Consciencefood: Acquisition Of Assets In Jakarta.

Consciencefood Holding Limited is pleased to announce that the Company, through its subsidiary, PT Olagafood Industri Makanan Dan Minuman has on 29 December 2011, entered into a sale and purchase agreement with PT. Olagafood Sukses Mandiri to acquire a piece of land located in Jakarta, Indonesia with a factory equipped with machineries for the production of instant noodles for a consideration of Rp69,000 million or approximately S$10 million. PT OSM was previously wholly owned by the Company's Chairman and Chief Executive Officer, Mr Djoesianto Law and his spouse, Mrs Law, who collectively disposed their entire shareholding in PT OSM on 26 December 2007...

 

PROCUREMENT OF BEVERAGE PRODUCTION MACHINERIES
Further to the announcement of the Company dated 14 January 2011, the Board of Directors of the
Company is pleased to announce that the Company has finalised its orders for the beverage
production machineries (the “Machineries”) for a total investment of approximately S$11 million, of
which S$2.5 million will be funded from the net proceeds of the Company’s initial public offering (the
“IPO”) while the remaining will be from the Company’s internal resources.
The Machineries are expected to be delivered to the Company’s production factory in Medan,
Indonesia, in the first half of financial year 2012 and the Company targets to complete the installation
of the Machineries to commence production of beverages by the second half of financial year 2012.

 

 

With market currently targeting penny stock,  I think is the right time to buy.

 

The price of Consciencfood has increased by > 2%.  Volume more than 200% as compared to the average volume traded over the past 1 month.

Looks like it is moving! Bought the share at 0.174 and 0.176.  Want to wait until 0.21 and see.

 

ok NOW can buy???? any chartists out there??? help! thanku

 

Wheat price down very sharply good news for consciencefood. Faster jump into ship!

Hulumas      ( Date: 18-Jun-2011 12:33) Posted: Mid term down trend path. tomker      ( Date: 17-Jun-2011 18:34) Posted: DBSV target price rise from 26cent to 35cent. Positive point 1)Wheat price coming down 2)Russia lift the wheat export ban 3) Cup noddle start production in  2nd half. 4) PE< 5. Good entry price  now 23.5cent downside risk low. All thing in place just wait  for east wind (More analysis write on higher target price and good result in coming qty

 

Mid term down trend path.

tomker      ( Date: 17-Jun-2011 18:34) Posted: DBSV target price rise from 26cent to 35cent. Positive point 1)Wheat price coming down 2)Russia lift the wheat export ban 3) Cup noddle start production in  2nd half. 4) PE< 5. Good entry price  now 23.5cent downside risk low. All thing in place just wait  for east wind (More analysis write on higher target price and good result in coming qty) GuavaXF30      ( Date: 02-Jun-2011 12:38) Posted: Div declared was not much to begin with (0.0068), so the run up was not because of Div. More likely, ppl are looking at this as being a more stable business than the other arse-chips out there. 0.25 is mid-band for this counter. It's just that in today's sea of red, can say the one-eyed man  is king in the land of the blind

 

DBSV target price rise from 26cent to 35cent. Positive point 1)Wheat price coming down 2)Russia lift the wheat export ban 3) Cup noddle start production in  2nd half. 4) PE< 5. Good entry price  now 23.5cent downside risk low. All thing in place just wait  for east wind (More analysis write on higher target price and good result in coming qty)

GuavaXF30      ( Date: 02-Jun-2011 12:38) Posted: Div declared was not much to begin with (0.0068), so the run up was not because of Div. More likely, ppl are looking at this as being a more stable business than the other arse-chips out there. 0.25 is mid-band for this counter. It's just that in today's sea of red, can say the one-eyed man  is king in the land of the blind. bluesky88      ( Date: 02-Jun-2011 09:30) Posted: Anyone knows what happen? Top volume after XD..When then it will  goes up to $.30 again? what will b the next resistance?

 

Div declared was not much to begin with (0.0068), so the run up was not because of Div. More likely, ppl are looking at this as being a more stable business than the other arse-chips out there.

0.25 is mid-band for this counter. It's just that in today's sea of red, can say the one-eyed man  is king in the land of the blind.

bluesky88      ( Date: 02-Jun-2011 09:30) Posted: Anyone knows what happen? Top volume after XD..When then it will  goes up to $.30 again? what will b the next resistance?

 

Anyone knows what happen? Top volume after XD..When then it will  goes up to $.30 again? what will b the next resistance?

 

loaded this today @ 0.25.

wish me luck :p 

 

thank u Tom ker. i q at 24. 

 

Dividend  0.68cent ex date : 6 June 11, today annou 1Q result profit ~1.23cent(annually ~4.9cent), based on today price PE < 5, OK to buy now, cheap lah!. New production line start 1H should be able to boost up the earning. Target price 40cent, just waiting some research house to write  some positive view on this counter.   

tea444u      ( Date: 11-May-2011 20:14) Posted: hi folks...this one can buy now? how much is the dividend? btw what is the exchange rate   thank u...

 

hi folks...this one can buy now? how much is the dividend? btw what is the exchange rate   thank u...

 

Hear say hear say from DMG::::

 Consciencefood Holdings: S$0.285                                                                                     Initiating BUY
(TP: S$0.39)

Strong growth ahead

Initiate  with  BUY  and  TP  of  S$0.39, based on 7x prospective earnings.
Newly-listed   Consciencefood   (CSF)   is   one   of   Indonesia ’s  largest
manufacturer  and  retailer  of  instant  noodles, commanding more than 50%
market  share in North Sumatra and ~4% in the whole of Indonesia . It is set
to  see  strong  earnings  growth, driven by: (1) increased demand from its
existing  market;  (2) fledgling cup noodle and bottled beverage production
lines; (3) new production facility near Jakarta .

FY11-12F  earnings CAGR of 40%; room for further growth. With a capacity to
produce  852m  packs  of  instant  noodles  and  360 packs of snack noodles
annually, it is just running at 55% utilisation rate leaving plenty of room
to cater for further demand. We expect earnings CAGR of 40% to be driven by
fresh contribution from cup noodles and bottled beverages as well as better
margins from a new production facility in Jakarta .

Strong  distribution network to launch new products. We are optimistic that
CSF’s  new  ventures  into  cup  noodles  and  bottled  beverages  will  be
well-received  by  the  market  as it already has an extensive distribution
network in place with 55 distributors across the country.

Attractively  valued.   At S$0.285, CSF trades at 5x FY11 P/E, which is one
of  the  most attractive compared to its regional peers. We are valuing CSF
at 7x FY11 earnings, the lower end of the band that its peers are currently
trading  at  (7-15x). Its direct competitor Indofood is going for 15x while
its Malaysian peer Mamee is trading at 11x.



 

 

 

I already vested! Hope to accum more while it is low.

 

this is 1 of the durian i m waiting to pick...

 

instant noodles +10 cents + 3.2%   high volume too !!

// ways to curb soaring inflation, perhaps have a economic bite to cure the stomach  //

 

Volume increasing, BB is accumulating the share & push the price to another platform, 0.36 soon. Annual result is otw high chances company will declare dividend. 

epliew      ( Date: 29-Dec-2010 22:27) Posted: wow... missed the boat @0.265. enghou      ( Date: 15-Dec-2010 16:25) Posted: UOBKH recommends BUY with Target Price of $0.385   What’s New  • We visited Consciencefood’s (CSF) instant noodle plant in Medan,  Indonesia and here are our key takeaways.  • New production line on track for completion by 1Q11.  As guided in  its 3Q10 results, CSF’s production line for high fibre instant cup noodles  is on track for completion in Feb 11.  A production line was also  upgraded to be more efficient and have a higher capacity. Utilisation  levels based on estimated 2010 production volumes will drop from 64%  to 55% post4upgrade/expansion.  • Jakarta plant targeted to come onstream in 4Q11. On its planned  establishment of a manufacturing plant in Jarkata,  management  indicated it could be operational by 4Q11.    • Margins could come under pressure from higher wheat prices.   Wheat prices have risen 65% from end4June to date and could impact  margins given wheat flour is a key raw material. However, we believe  the company will be able to pass on most of the price increases to its  customers as instant noodles are a staple food in Indonesia. We have  factored into our earnings model slightly lower gross margins of 29.5%  for its instant noodles segment from 30% previously.  Stock Impact  • Growth drivers for 2011 in place, full impact of Jakarta plant to be  felt only in 2012. We believe CSF will be able to achieve double4digit volume growth in 2011, with profit growth moderated somewhat by  pressures from higher wheat flour prices. For 2012, we expect impact to  earnings to come from a mix of volume growth and substitution of  existing OEM arrangements resulting in margin expansion.   • Potential re-rating as capacity comes onstream. The market should  start taking notice of Consciencefood following its capacity expansion  and earnings growth in 2011. We note the company remains in a net  cash position post4IPO and has significant capacity for expansion. The  stock is trading at attractive valuations and will  likely see a re4rating as  operations grow. In our view, CSF remains an excellent proxy to  Indonesia’s consumers and its emerging middle class.    Earnings Revision/Risks  • We lower our 2011 earnings by 5.6% given the impact of higher wheat  flour prices. Despite this, core earnings growth is expected to remain  strong at 18.5% yoy for 2011.    • Major risks include:  a) Execution risks for new Jakarta factory,  b) Disruptions to operations or supply of raw materials, and  c) Further rise in wheat flour prices.  Valuation/Recommendation  • Maintain BUY. We maintain BUY and raise our target price to S$0.385  from S$0.365 as we roll forward our valuations to 2011. Our valuation is  based on a 9x PE on 2011F core earnings and a 40% discount to  recently4listed Indofood CBP’s (ICBP IJ) PE of 16x. Our target price  implies a PEG of 0.5x.   Share Price Catalysts  • Completion of new factory in Jakarta area.  • Deployment of cash hoard in new investments/acquisition You have a nice day

 

wow... missed the boat @0.265.

enghou      ( Date: 15-Dec-2010 16:25) Posted: UOBKH recommends BUY with Target Price of $0.385   What’s New  • We visited Consciencefood’s (CSF) instant noodle plant in Medan,  Indonesia and here are our key takeaways.  • New production line on track for completion by 1Q11.  As guided in  its 3Q10 results, CSF’s production line for high fibre instant cup noodles  is on track for completion in Feb 11.  A production line was also  upgraded to be more efficient and have a higher capacity. Utilisation  levels based on estimated 2010 production volumes will drop from 64%  to 55% post4upgrade/expansion.  • Jakarta plant targeted to come onstream in 4Q11. On its planned  establishment of a manufacturing plant in Jarkata,  management  indicated it could be operational by 4Q11.    • Margins could come under pressure from higher wheat prices.   Wheat prices have risen 65% from end4June to date and could impact  margins given wheat flour is a key raw material. However, we believe  the company will be able to pass on most of the price increases to its  customers as instant noodles are a staple food in Indonesia. We have  factored into our earnings model slightly lower gross margins of 29.5%  for its instant noodles segment from 30% previously.  Stock Impact  • Growth drivers for 2011 in place, full impact of Jakarta plant to be  felt only in 2012. We believe CSF will be able to achieve double4digit volume growth in 2011, with profit growth moderated somewhat by  pressures from higher wheat flour prices. For 2012, we expect impact to  earnings to come from a mix of volume growth and substitution of  existing OEM arrangements resulting in margin expansion.   • Potential re-rating as capacity comes onstream. The market should  start taking notice of Consciencefood following its capacity expansion  and earnings growth in 2011. We note the company remains in a net  cash position post4IPO and has significant capacity for expansion. The  stock is trading at attractive valuations and will  likely see a re4rating as  operations grow. In our view, CSF remains an excellent proxy to  Indonesia’s consumers and its emerging middle class.    Earnings Revision/Risks  • We lower our 2011 earnings by 5.6% given the impact of higher wheat  flour prices. Despite this, core earnings growth is expected to remain  strong at 18.5% yoy for 2011.    • Major risks include:  a) Execution risks for new Jakarta factory,  b) Disruptions to operations or supply of raw materials, and  c) Further rise in wheat flour prices.  Valuation/Recommendation  • Maintain BUY. We maintain BUY and raise our target price to S$0.385  from S$0.365 as we roll forward our valuations to 2011. Our valuation is  based on a 9x PE on 2011F core earnings and a 40% discount to  recently4listed Indofood CBP’s (ICBP IJ) PE of 16x. Our target price  implies a PEG of 0.5x.   Share Price Catalysts  • Completion of new factory in Jakarta area.  • Deployment of cash hoard in new investments/acquisition You have a nice day