Tuesday, May 10, 2011

Sozo ... May11

Sozo Global Ltd, a China-based company listed late last year, manufactures instant food products. It could see its exports to Japan, which make up about 7% of its revenue, increase because of heightened demand for quick food products in the aftermath of the devastating earthquake and tsunami and the ongoing nuclear emergency crisis.

Sozo is a food player and counts Khazanah Nasional as one of its major shareholders.

Its net assets per share stood at 64 sen.

Sozo’s lacklustre share price performance, exceedingly low three-times PER (which implies a payback of three years) and strong cash-rich balance sheet make the stock an attractive potential privatisation candidate. As at Dec 31, 2010, the company had net cash of RM 257.01 million, or a hefty 55 sen per share.
Its single largest controlling shareholder is CEO Hengbao Shen, who owns a 57.09% stake in the company. For FY10 ended Dec 31, Sozo’s net profit rose 30.8% to RM94.03 million, or 27.8 sen per share, on the back of a 34% growth in revenue to RM381.65 million.

25 comments:

Anonymous said...

I foresee that this is a good fundamental company which is undervalue and should be look out for. Their business is interesting and they have room for growth for the next 3-5 years. I am looking forward for the company HALAL project and dual listing plan by end of this year as per their Prospectus.

Anonymous said...

Sure Fly this one meh?

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