This company just appear in my "radar screen" of fundamentally good stock.
You can check the company out at http://www.petrafoods.com/
Why is it good?
1) Strong consumer brand:
or I should say it manufactures chocolate with strong consumer brand which includes
The Mars Group
Barry Callebaut and the
Meiji Group as our customers.
2) Leader in the field in South East Asia
This is what they claim and that is why all the chocolate brands listed above outsource their manufacturing to Petra Food
3) Large Distributing Network
4) Consistent Historical growth from yr 2001 to yr 2004
with 38.3% compounded annual growth rate (CAGR) for revenue
and 30.4% CAGR for EBITDA (earnings before income tax, depreciation and amortization)
and 41.6% CAGR for NPAT (net profit after tax)
5) Large overseas market that they have not venture into.
That includes Europe and China.
6) PE ratio
A bit high at 17.6 but if it promises consistent growth rate at 41.6%, I guess this is a relatively cheap valuation.
Anyone interested in a company/factory visit?