In today’s briefing:
- Monde Nissin: High Steaks And Flexitarian Impairments
- Monde Nissin: The Investment Case
- ZJLD Group IPO: The Bear Case
- Archer-Daniels-Midland Company: Initiation of Coverage – Acquisitions & Other Key Drivers
- Archer-Daniels-Midland Company: Detailed Credit Analysis & Financial Strength Evaluation Report
Monde Nissin: High Steaks And Flexitarian Impairments
- Last week, Filipino food manufacturer Monde Nissin Corp (MONDE PM) announced FY22 top-line growth of 6.7%.
- However, the bottom line spilled red ink after booking impairment losses relating to its Quorn meat alternative ops.
- The thrust of Quorn/Impossible/Beyond alternatives was that meat eaters would sacrifice their burgers without having to sacrifice anything at all. Yet the Big Meat appetite is not so easily swayed.
Monde Nissin: The Investment Case
- Monde Nissin Corp (MONDE PM) shares are down 18% on the back of FY22 results which revealed a net loss of PHP13 billion mainly due to a large impairment charge.
- While softening demand in meat alternatives is a headwind, Monde should benefit from the tailwinds of market share gains (in APAC BFB) and margin improvement (easing cost inflation).
- The valuation is undemanding (SOTP valuation of PHP10.21 per share) and will prove attractive to investors with a longer-term investment horizon.
ZJLD Group IPO: The Bear Case
- ZJLD Group (ZJLD HK), a baijiu company in China, is pre-marketing an HKEx IPO to raise up to US$400 million, according to press reports.
- In ZJLD Group IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The key elements of the bear case rest on the sharpest revenue slowdown, lowest operating margin and FCF margin vs peers along with a deterioration in lead growth indicators.
Archer-Daniels-Midland Company: Initiation of Coverage – Acquisitions & Other Key Drivers
- This is our first report on global food processing giant, Archer-Daniels-Midland.
- Low water conditions limited North American export volumes, which were largely offset by a strong performance by the South American business.
- The North American business produced excellent volumes and margins in both starches and sweeteners, slightly offsetting decreased ethanol margins.
Archer-Daniels-Midland Company: Detailed Credit Analysis & Financial Strength Evaluation Report
- Archer-Daniels-Midland is one of the largest food processing companies in the world.
- Low water conditions limited North American export volumes, which were largely offset by a strong performance by the South American business.
- Baptista Research looks to evaluate the different credit strengths and credit risks of the company as well as a line-by-line analysis of the financial statements of the company for the past four years.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
