Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>RFM Corp is one of the major players in the food and beverage industry in the Philippines, with well-known brands in pasta, flour, milk, ice cream, and bread.</li>
<li>From 2019 to 2023, the company's dividend yield averaged 6.9% and its dividend payout averaged 72.7%. </li>
<li>A major reason why the company's profits and cash flow is consistent is due to its loyal customer base that repeatedly purchase the company's products.</li>
</ul>


RFM Corp is one of the major players in the food and beverage industry in the Philippines, with well-known brands in pasta, flour, milk, ice cream, and bread.
From 2019 to 2023, the company's dividend yield averaged 6.9% and its dividend payout averaged 72.7%. 
A major reason why the company's profits and cash flow is consistent is due to its loyal customer base that repeatedly purchase the company's products.


IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Del Monte Philippines / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/del-monte-philippines-inc" target="_blank" data-smartkarma-citation="entities:26988:1" rel="noopener">Del Monte Philippines (1575316D PM)</a>/DMPI is a leading producer, distributor and marketer of premium quality, healthy food and beverage products. It is a market leader in the packaged pineapple and mixed fruit, ready-to-drink juices (excluding stand-up-pouches), tomato sauce and spaghetti sauce categories in the Philippines. DMPI has the rights to the Del Monte trademark for the Philippines for processed products and also sells products under the brands of S&amp;W, Contadina and Today’s. The parent company is <a href="https://www.smartkarma.com/entities/del-monte-pacific-ltd-5951cd46-129c-41bb-8eb2-58654da08425" target="_blank" data-smartkarma-citation="entities:22651:1" rel="noopener">Del Monte Pacific (DELM PM)</a> which holds 87.0% of outstanding shares.DMPI is pre-marketing for an IPO to raise up to PHP44 billion ($0.9 billion) at the maximum offer price of PHP54.80, according to press reports. The base offer of 699.3 million shares is entirely a secondary offering by the selling shareholders, <a href="https://www.smartkarma.com/entities/del-monte-pacific-ltd" target="_blank" data-smartkarma-citation="entities:5051:1" rel="noopener">Del Monte Pacific (DELM SP)</a> and Singapore-based SEA Diner Holdings. <div class="content-highlight">DMPI is a play on the healthy packaged and convenient packaged food and beverage categories that benefit from long-term secular tailwinds in the Philippines. DMPI’s financial track record shows it has been able to leverage its market-leading position to combine solid top-line growth with improving margins and cash generation. The growth strategy sensibly revolves around leveraging the strong brand to enter adjacent categories, the expansion of domestic distribution in underpenetrated regions and increasing share in North Asia, particularly China (premium fresh pineapples). Overall, we believe that DMPI’s fundamentals are attractive.</div>

Del Monte Philippines (1575316D PM)/DMPI is a leading producer, distributor and marketer of premium quality, healthy food and beverage products. It is a market leader in the packaged pineapple and mixed fruit, ready-to-drink juices (excluding stand-up-pouches), tomato sauce and spaghetti sauce categories in the Philippines. DMPI has the rights to the Del Monte trademark for the Philippines for processed products and also sells products under the brands of S&amp;W, Contadina and Today’s. The parent company is Del Monte Pacific (DELM PM) which holds 87.0% of outstanding shares.DMPI is pre-marketing for an IPO to raise up to PHP44 billion ($0.9 billion) at the maximum offer price of PHP54.80, according to press reports. The base offer of 699.3 million shares is entirely a secondary offering by the selling shareholders, Del Monte Pacific (DELM SP) and Singapore-based SEA Diner Holdings. DMPI is a play on the healthy packaged and convenient packaged food and beverage categories that benefit from long-term secular tailwinds in the Philippines. DMPI’s financial track record shows it has been able to leverage its market-leading position to combine solid top-line growth with improving margins and cash generation. The growth strategy sensibly revolves around leveraging the strong brand to enter adjacent categories, the expansion of domestic distribution in underpenetrated regions and increasing share in North Asia, particularly China (premium fresh pineapples). Overall, we believe that DMPI’s fundamentals are attractive.

Del Monte Philippines IPO Initiation: Tempting Fruit

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Thematic (Sector/Industry)

<ul><li>In 2016, Singapore’s Consumer Staples Sector surged 25.8% on a capitalisation-weighted total return basis. There was a degree of consistency in the returns of the 10 biggest stocks of the Sector with total returns averaging 28.9%. </li><li>Among the 10 biggest stocks of the Consumer Staples Sector, the three best performers were <a href="https://www.smartkarma.com/entities/15597" target="_blank" data-smartkarma-citation="entities:15597">Japfa Ltd (JAP SP)</a>, <a href="https://www.smartkarma.com/entities/20972" target="_blank" data-smartkarma-citation="entities:20972">Super Group Ltd (SUPER SP)</a> and <a href="https://www.smartkarma.com/entities/1142" target="_blank" data-smartkarma-citation="entities:1142">Golden Agri Resources Ltd (GGR SP)</a>. For the nine months ending 30 Sep 2016: Japfa reported operating profit of US$268.4 million, up 90% from a year ago; while GAR reported profit attributable to owners of the company at US$353.3 million compared to a loss of US$9.2 million a year ago.  Super Group was subject to a proposed acquisition by the world’s leading pure-play CPG coffee company, priced at a 62.5% premium to the preceding close.</li><li>The next two best performing sectors were Materials and Information Technology which generated capitalisation-weighted total returns of 17.3% and 14.5% respectively. All Singapore’s key GICS® Sectors generated gains in 2016, with Energy generating the smallest of the gains at 0.9%. </li></ul>

In 2016, Singapore’s Consumer Staples Sector surged 25.8% on a capitalisation-weighted total return basis. There was a degree of consistency in the returns of the 10 biggest stocks of the Sector with total returns averaging 28.9%. Among the 10 biggest stocks of the Consumer Staples Sector, the three best performers were Japfa Ltd (JAP SP), Super Group Ltd (SUPER SP) and Golden Agri Resources Ltd (GGR SP). For the nine months ending 30 Sep 2016: Japfa reported operating profit of US$268.4 million, up 90% from a year ago; while GAR reported profit attributable to owners of the company at US$353.3 million compared to a loss of US$9.2 million a year ago.  Super Group was subject to a proposed acquisition by the world’s leading pure-play CPG coffee company, priced at a 62.5% premium to the preceding close.The next two best performing sectors were Materials and Information Technology which generated capitalisation-weighted total returns of 17.3% and 14.5% respectively. All Singapore’s key GICS® Sectors generated gains in 2016, with Energy generating the smallest of the gains at 0.9%. 

2016 – a Solid Year for STI Consumer Stocks

§ The 10 biggest SGX-listed F&amp;B plays average a market cap of S$3.5 billion, and averaged a 23% gain in the 2016 year through to 26 August. Japfa, Thai Beverage PCL and Jumbo Group were the strongest performers of the 10.§ The next 10 biggest SGX-listed F&amp;B plays average a market cap of S$153 million, and also averaged a 23% gain in the 2016 year through to 26 August. Food Empire Holdings and Katrina Group were the amongst strongest performers of the 10.§ Katrina Group was incorporated in 1995…

§ The 10 biggest SGX-listed F&amp;B plays average a market cap of S$3.5 billion, and averaged a 23% gain in the 2016 year through to 26 August. Japfa, Thai Beverage PCL and Jumbo Group were the strongest performers of the 10.§ The next 10 biggest SGX-listed F&amp;B plays average a market cap of S$153 million, and also averaged a 23% gain in the 2016 year through to 26 August. Food Empire Holdings and Katrina Group were the amongst strongest performers of the 10.§ Katrina Group was incorporated in 1995…

Singapore's Strongest Food & Beverage Stocks in 2016 YTD

<ul>
<li>Industry Associations see ongoing transformation of Singapore’s F&amp;B industry as manufacturers look towards innovation, growth, and internationalisation.</li>
<li>The 10 biggest Packaged Foods &amp; Meats stocks in Singapore have averaged a 12.6% total return in the year thus far. This compared to 10.1% for Asia Pacific’s biggest Packaged Foods &amp; Meats stocks and 8.9% for the world’s biggest Packaged Foods &amp; Meats stocks.</li>
<li>
<a href="https://www.smartkarma.com/entities/19714" target="_blank" data-smartkarma-citation="entities:19714:1">Delfi Ltd (DELFI SP)</a>, <a href="https://www.smartkarma.com/entities/15597" target="_blank" data-smartkarma-citation="entities:15597:1">Japfa Ltd (JAP SP)</a>, <a href="https://www.smartkarma.com/entities/20972" target="_blank" data-smartkarma-citation="entities:20972:1">Super Group Ltd (SUPER SP)</a>, <a href="https://www.smartkarma.com/entities/9051" target="_blank" data-smartkarma-citation="entities:9051:1">Yeo Hiap Seng Ltd</a>…</li>
</ul>


Industry Associations see ongoing transformation of Singapore’s F&amp;B industry as manufacturers look towards innovation, growth, and internationalisation.
The 10 biggest Packaged Foods &amp; Meats stocks in Singapore have averaged a 12.6% total return in the year thus far. This compared to 10.1% for Asia Pacific’s biggest Packaged Foods &amp; Meats stocks and 8.9% for the world’s biggest Packaged Foods &amp; Meats stocks.

Delfi Ltd (DELFI SP), Japfa Ltd (JAP SP), Super Group Ltd (SUPER SP), Yeo Hiap Seng Ltd…


Key Drivers of the Packaged Food Industry

Philippines

RFM Corporation manufactures, processes, and sells food and beverage products to institutions and consumers in the Philippines. It operates in Institutional Business, Consumer Business, and Other Operations segments. The company offers flour products, hamburger buns, English muffins, flour-based and rice-based products, pasta, spaghetti sauces, margarine, and other bakery products; ready to drink juices and tea, milk and choco milk, and functional drinks, as well as powdered juices and bottled mineral water; and ice cream products. It also provides barging services, such as lighterage and cargo handling services; and leases commercial and office spaces. The company offers its products principally under the Sunkist, Selecta, White King, Royal, Selecta Moo, Selecta Fortified, and Fiesta brand names. RFM Corporation sells its products through hypermarkets, supermarkets, groceries, convenience stores, wholesalers, distributors, institutional customers, food service customers, flour dealers, flour end users, and the company stores. The company was formerly known as Republic Flour Mills, Inc. RFM Corporation was incorporated in 1957 and is headquartered in Mandaluyong, the Philippines.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

RFM Corp (RFM PM)

Asian Dividend Gems: RFM Corp

RFM Corp is one of the major players in the food and beverage industry in the Philippines, with well-known brands in pasta, flour, milk, ice cream,...

Douglas Kim

Del Monte Philippines IPO Initiation: Tempting Fruit

DMPI is pre-marketing for an IPO to raise up to PHP44 bn ($0.9 bn) at the maximum offer price of PHP54.80, according to press reports. Overall, we...

Arun George

2016 – a Solid Year for STI Consumer Stocks

In 2016, Singapore’s Consumer Staples Sector surged 25.8% on a capitalisation-weighted total return basis. There was a degree of consistency in...

Singapore Exchange Ltd (SGX)

Singapore's Strongest Food & Beverage Stocks in 2016 YTD

§ The 10 biggest SGX-listed F&B plays average a market cap of S$3.5 billion, and averaged a 23% gain in the 2016 year through to 26 August....

Singapore Exchange Ltd (SGX)

Key Drivers of the Packaged Food Industry

Industry Associations see ongoing transformation of Singapore’s F&B industry as manufacturers look towards innovation, growth, and...

Singapore Exchange Ltd (SGX)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)