WITH the completion of its Tuas headquarters and Botanical Herbal Extract line this year, there are no other announced plans in the pipeline. While management is looking at possible investments in Myanmar and other new products, we think the quantum is unlikely to make a big dent in its debt-free position of S$94 million and free cash-flow, which will improve dramatically from S$51 million to S$100 million next year.
Justifies a DCF (discounted cash flow) valuation matrix, reiterate "buy". We continue to believe Super is an attractive takeover target. Furthermore, its growing and resilient earnings are now bearing fruit into free cash-flow. We think these factors justify a DCF valuation methodology (3-stage). We keep our estimates unchanged, but this fresh perspective yields a TP of S$6.30, implying 30 per cent upside from current levels.
BUY
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