Tuesday, November 25, 2014

Apollo Food .

It is a leading manufacturer of compound chocolate confectionery products and layer cakes. For FY April 2013, some 56% of its sales were sold locally and the balance of 44% exported, mostly to the Asia Pacific region.

It has a solid cash rich balance sheet. As at 1QFY2015, net cash stood at rm86.6 million or rm1.08 per share. The company pays consistently high dividends.

From FY2010 to FY2014, its sales grew by a CAGR of 8.4% to rm221 million while pre tax profit grew by a CAGR of 7.8% to rm43.6 million. During the same period, shareholders’ equity increased by a CAGR of only 4.3%, implying a large portion of earnings are returned to shareholders.

The company is majority owned by its MD, Singaporean Liang with a 51% stake followed by ASB with a 20% stake.

The company has been hit by rising cocoa prices which surged over 50% in the last 18 months prior to Nov 2014 and falling demand. For 1QFy2015 sales fell by 10% year on year to rm51.6 million while pre tax profit slumped by 40.5% year on year to rm8.3 million.

It is trading at a 12 month PER of 14.3 times and a price to book of 1.6 times.

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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.