Sunday, April 24, 2011

Oriental Food Industry OFI 7107



Oriental Food is one of a leading manufacturer and exporter of snack food and confectioneries products in Malaysia. Its products brand such as Jacker, Rota, Fudo, Delio. Super Ring, Zess and others. It is sadly to say that, I only recognize the product brand "Jacker" only, the other cannot be recognized. I am not sure are you familiar with those brands or not, but I will say that there is no brand advantage in its products.

When the products do not have a brand advantage, then normally company have to go into price war with other competitors. It is worst when the raw material cost is rising.

Last 3 quarters achieved 12.81 cents, annualised equal 17.08 cents. Trading price now is RM 1.58, which gives PE 9.25
For me, it is expensive for a no branding advantage company like this.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.