OREANDA-NEWS. There are 22 Singapore stocks currently listed for trading that represented the Packaged Food & Meats Industry. Together these 22 stocks maintain a combined market capitalisation of S$8.9 billion which is almost 1% of the total market capitalisation of all stocks listed on Singapore Exchange (SGX).

Packaged Foods & Meats Industry

The Packaged Foods & Meats Industry is a sub grouping of stocks (referred to as a sub-industry) that help to make up the Food, Beverage & Tobacco Industry within the Consumer Staples Sector. This is according to the Global Industry Classification Standard (GICS®) which simply defines the Packaged Foods & Meats businesses as producers of packaged foods including dairy products, fruit juices, meats, poultry, fish and pet foods.

Biggest Stocks of the Packaged Foods & Meats Industry

The five largest capitalised stocks of Singapore’s  22 Packaged Foods & Meats stocks are Petra Foods, JAPFA, Super Group, Indofood Agri Resources and Yeo Hiap Seng. Together the five stocks have averaged a 20.9% total return in the year to date with returns ranging from -1.5% for Yeo Hiap Seng to 44.7% for JAPFA. In terms of market capitalisation these five stocks make up more than three-fifths of the capitalisation of the combined Packaged Food & Meats Industry.

Over the past five years these five biggest Packaged Foods & Meats stocks have averaged a 10.9% total return with two gainers and three decliners and JAPFA listing within the five year period. This compared to the five biggest stocks in Hong Kong generating an average decline of 2.7% with the same ratio of gainers to decliners and two of the five stocks listing over the past five years.

Recent industry challenges have included more discerning consumers of packaged foods in addition to more global competition amongst suppliers with digital fronts and lower shipping costs.

Comparative Price-Earnings Ratios

Singapore’s 22 stocks of the Packaged Foods & Meats Industry maintain competitive valuations – with the average Price-to-Earnings (P/E) ratio for the 22 stocks at 21.9. This compares to an average P/E ratio of 16.8 for the listed Packaged Food & Meats stocks of Japan, Malaysia, Indonesia and Hong Kong.

P/E ratios show what share price investors are willing to pay for every dollar the company earns. The average P/E ratios of the stocks that make up Packaged Foods & Meats Industries in each of the five other countries are illustrated below.

Average P/E Ratio of GICS® Packaged Foods & Meats Industry

Source: Bloomberg (Data as of 19 April 2016). Note for the purpose of this comparative study, 6 stocks with PE> 200 are omitted and stocks without PE are assigned a P/E of 0.

China Star Food Group

Today, China Star Food Group debuted on SGX Catalist at a price of 23 cents per share. Within three hours of its trading on its first day, China Star Food's share price has increased to 31.5 cents, an increase of 37% and it is currently trading at 29.5 cents.  The stock code of China Star Food Group is 42W.

The stock’s debut on SGX Catalist today followed the successful completion of the reverse takeover (RTO) of Brooke Asia and the successful completion of the Compliance Placement on 18 April. All 25,250,000 Placement Shares with 50,500,000 Warrants were validly subscribed and application monies received for these Placement Shares with Warrants amounted to S$5,807,500.

The detachable warrants, give shareholders who participated in the listing an option to increase their shareholding in the company within two years of its listing. China Star Food's warrants have a conversion ratio of one warrant  to one share and an exercise price of 33 cents. 

China Star Food Group produces six main categories of sweet potato snack food under its proprietary brands of “Starpay” (??), “Ledi” (??/??), “Delijia” (???), “Zilaohu” (???). They are namely:

  •  Preserved foods
  •  Crisps
  •  Candies
  •  Baked goods
  •  Pastries
  •  Roasted sweet potato nuts

The company’s main business operations are located in Fujian province. The snacks are sold mainly to distributors and wholesalers, who distribute via e-commerce portals and supermarkets, petrol kiosks, convenience stores and specialty stores throughout China. The Group recently won the High Growth Enterprise Award at the 9th China Food Industry Growth Enterprises Awards held on 26 October 2015 during the Nanjing Food Exhibition.  

Stocks of the Packaged Foods & Meats Industry

Please note that China Star Food Group is yet to have its sector representation re-categorised following the RTO and debut on SGX Catalist today.

As noted above, the similar sub-industry of Packaged Foods & Meats Industry is made up of 22 stocks that have averaged a year to date return of 6.2%  and a P/E ratio of 21.9. These 22 stocks are tabled below. To see more details on an individual company in SGX StockFacts click on the respective stock names.

Source: SGX, SGX StockFacts, Bloomberg (Data as of 19 April 2016)