Super Group – change for the better?

I have previously written posts about Super Group (read here and here).

super-group_416x416.jpg

It appears that Super Group’s financial is taking baby steps improving (read here). Main weakness appears to be due to weakness in the Thai baht and Malaysian ringgit, and expenditure on advertising and promotional activities for its new products.

I don’t view the currency weakness as detrimental to the financial fundamentals of the company. It is a constant threat, and it fluctuates.
The expenditure on advertising and promotional is only justified in the long run if it bears fruit. This is probably the bane of this highly competitive industry. The initial promotion for new products would be high, however, if the products are welcomed and accepted by the consumers, the long term benefit would be great. And the recurring cost can be reduced.

As the 5 years, EPS growth is -4.47, the trailing PEG would be negative.

However, the free cash flow has been increasing in recent years.
111.jpg

I did a quick intrinsic calculation of the share, it appears that the current share price ($0.775) is below the intrinsic value.

Intrinsic Value calculator_Super Group1.jpg

The above intrinsic value is around the same value as the intrinsic value I calculated in Jan 2015 which was 0.9 (read here).

I have started to nibble at this stock.

Advertisements

About apenquotes

Born in 1976. Married with 2 kids (a boy and a girl). A typical Singaporean living in a 4 room HDB flat.
This entry was posted in Super Group. Bookmark the permalink.

6 Responses to Super Group – change for the better?

  1. Rolf says:

    Hi APQ,

    Super also have strong balance sheet. Use to be loved stock of STI. Now it’s the Unlove stock falling 50% of it’s peak share price!

    Like

  2. In those past years, in free preview seminars on value investing; Super was also often quoted by seminar “Gurus” as one example on how one can pick multi-bagger using value investing method.

    Like

    • apenquotes says:

      It has since lost that status. Which to me is great.

      Branded Consumer: It lacked the pricing power due to the commodity like product and competition from Nestle.
      However, in recent times it has tried to move into more niche products (Essenso and nutritional sector).

      Food Ingredients has also been inching up slightly.

      I don’t view the currency weakness (Thai baht and Malaysian ringgit) as detrimental to the financial fundamentals of the company.

      Like

      • Rolf says:

        CW, u r right! Several years ago, I attended a seminar. An auntie also asked the trainer about Super saying this is a super good stock!

        Like

  3. Pingback: What a Super day | A Pen Quotes

  4. Pingback: Fu Shou Yuan International Group Limited | A Pen Quotes

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s