자료: Factset, Mpustat, 미래에셋증권 리서치센터 추정 주: 음영 기업은 당사 추정치 기준, 그 외의 기업은 FnGuide 컨센선스 기준
Aug 28 2007 MIRAE ASSET RESEARCH 26 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Korea F&B Comparative Performance Company Name Price Foreign CHG 12-month Forward Valuation Tr. Tr. Performance Ownership 3Mon PER PSR PEG PBR EV/EBITDA 1W 1M 3M 6M 12M YTD 3Y (Won) (%) (x) (x) (x) (x) (x) (%) (%) (%) (%) (%) (%) (%)Valuation Summary
KT&G 66,700 51.0 (3.3) 12.9 4.0 0.9 3.4 11.3 6.9 (5.8) (2.6) 13.1 13.1 18.1 126.1
CJ 119,000 22.1 0.2 25.7 1.5 6.2 2.3 17.4 10.2 (7.8) 19.0 20.7 27.1 6.3 107.7
하이트맥주 117,500 25.9 (0.5) 15.8 1.0 0.5 2.0 12.1 13.0 (7.8) (3.7) 10.3 17.5 (1.7) 49.7
롯데제과 1,600,000 35.9 (6.7) 16.1 1.9 (0.5) 1.5 16.2 4.4 (9.1) 36.2 24.5 33.9 32.2 184.2
롯데칠성 1,470,000 37.3 (3.9) 20.5 1.5 2.5 1.3 10.4 14.8 (7.0) 26.9 10.5 15.5 5.0 120.7
오리온 274,000 41.4 (0.2) 19.0 2.9 (1.7) 3.7 42.4 5.4 (12.7) 7.5 21.2 27.7 0.6 260.1
농심 219,500 31.7 2.5 10.6 0.6 3.5 1.4 4.9 1.6 (16.2) (12.5) (14.6) (2.4) (23.0) (5.8)
삼양사 68,500 7.1 (0.3) 13.4 0.5 0.3 0.9 10.3 7.7 (8.7) 3.9 28.0 40.9 10.1 214.2
매일유업 38,600 20.1 0.5 15.3 0.7 2.3 2.3 12.2 1.6 (1.8) 6.6 32.0 103.2 50.2 743.7
오뚜기 153,500 21.6 (1.9) 11.3 0.2 0.4 1.8 9.1 10.4 3.7 39.5 71.1 65.6 48.3 522.7
대상 11,400 16.7 1.4 20.3 0.2 NA 1.1 9.7 5.1 (20.0) 4.1 16.7 0.3 (5.4) 315.2
빙그레 39,300 35.8 (3.0) 12.1 0.2 3.7 1.6 5.8 2.6 (6.3) (2.4) 1.8 10.7 (7.7) 80.3
삼양제넥스 102,000 35.8 (1.7) 11.2 0.1 (1.7) 1.0 5.1 10.3 (4.7) 11.4 11.7 44.9 9.3 269.6
롯데삼강 252,000 3.8 0.4 10.5 0.8 0.3 1.3 9.4 13.5 3.9 23.5 55.1 90.9 51.8 214.6
동원F&B 72,300 20.7 (1.4) 11.0 0.3 0.5 1.0 7.8 10.4 (8.2) 3.4 2.1 43.2 13.5 96.5
풀무원 42,500 17.7 4.3 9.3 0.6 0.5 1.3 12.4 6.5 (19.0) 9.7 38.4 53.2 32.8 3.9
진로발효 13,900 3.3 (3.0) 10.0 2.4 1.4 2.3 6.8 10.3 (11.5) 2.5 35.3 61.5 38.8 816.2
무학 6,450 8.1 (2.6) 5.7 0.1 0.1 1.4 5.9 9.1 (10.0) 26.5 17.3 44.6 26.5 152.9
대림수산 26,050 1.6 0.5 9.8 0.0 0.4 3.2 9.7 12.8 1.0 36.0 40.8 44.7 21.2 98.7
자료: Factset, Mpustat, 미래에셋증권 리서치센터 추정 주1: 국외 기업은 I/B/E/S 컨센서스, 국내 기업 중 당사 커버리지 아닌 종목은 FnGuide 컨센서스, 당사 커버리지 종목은 당사 추정치 기준임 주2: : 기간별 Best : 기간별 Worst
Aug 28 2007 MIRAE ASSET RESEARCH 27 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
PER - EPS Growth
30.0 (Fw PER, X) CJ
25.0 롯데칠성 오리온 20.0 롯데제과 하이트맥주 매일유업 15.0 삼양제넥스 빙그레 KT&G F&B 동원 롯데삼강 10.0 진로발효 오뚜기 농심 풀무원 대림수산 5.0
(06~08E EPS CAGR, %) 0.0 (30.0) (20.0) (10.0) 0.0 10.0 20.0 30.0 40.0
자료: Fnguide, Mpustat, 미래에셋증권 리서치센터 추정
Tr.PBR - ROE Map
(Tr.PBR, X) 4.0 오리온 KT&G 3.5
3.0
매일유업 진로발효 2.5 CJ
2.0 하이트맥주 오뚜기 빙그레 롯데칠성 롯데제과 1.5 풀무원 대상 롯데삼강 F&B 농심 무학 1.0 동원 삼양제넥스 0.5 삼양사 (07E ROE, %) 0.0 0.0 5.0 10.0 15.0 20.0 25.0
자료: Fnguide, Mpustat, 미래에셋증권 리서치센터 추정
PEG Valuation
(X) 7.0 6.2 6.0
5.0
4.0 3.5 3.7
3.0 2.3 2.5
2.0 1.4 0.9 1.0 0.5 0.5 0.3 0.3 0.4 0.5 0.0 CJ F&B 농심 KT&G 풀무원 빙그레 삼양사 오뚜기 동원 진로발효 매일유업 롯데칠성 롯데삼강 하이트맥주
자료: Fnguide, Mpustat, 미래에셋증권 리서치센터 추정
Aug 28 2007 MIRAE ASSET RESEARCH 28 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Historical high 04/12월 1.7x 및 Korean F&B’s Historical Relative PER 연초 1.6x 대비 30% 하향 조정된 relative PER (relative PEx) 2.0
1.5
1.0
0.5
0.0 01/01 02/01 03/01 04/01 05/01 06/01 07/01
자료: 미래에셋증권 리서치센터 추정 (주: Benchmark는 KOSPI)
PBR은 여전히 시장 대비 Korean F&B’s Historical Relative PBR 약 22% 프리미엄 상태
(relative PBx) 1.5
1.0
0.5
0.0 01/01 02/01 03/01 04/01 05/01 06/01 07/01
자료: 미래에셋증권 리서치센터 추정(주: Benchmark는 KOSPI)
상대 EV/EBITDA는 2005년 이래 Korean F&B’s Historical Relative EV/EBITDA 최초로 1.0x 미만으로 하락 (relative EV/EBITDAx)
1.5
1.0
0.5
0.0 01/01 02/01 03/01 04/01 05/01 06/01 07/01
Aug 28 2007 MIRAE ASSET RESEARCH 29 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
자료: 미래에셋증권 리서치센터 추정(주: Benchmark는 KOSPI)
Appendix: Company Profiles
Aug 28 2007 MIRAE ASSET RESEARCH 30 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Altria Group Inc. (MO-US) MO-US 02209S103 2692632 NYSE Common stock Current 52 Wk YTD Market 52 Wk Headqrters New York New York USA +1 917 643-4000 Price Range PChg Val (M) Beta Web Site http://www.altria.com 68.630 72 - 56 6.6 144,480 0.71 Industry Tobacco (2430) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 76.6 % Insider Hldgs 0.2 % 16.8 8.9 9.9 1.6 4.0 Q3 2007 Earnings Release 17-Oct-2007 12:00AM (EST) Ratios Relative Strength vs. S&P 500 Stock Index Latest 3 Yr Avg 5 Yr Avg 114 Gross Margin 46.7 46.8 47.0 112 110 EBITD Margin 28.3 28.0 28.6 108 Net Margin 17.1 15.8 16.1 106 104 R&D%Sales 1.4 1.4 1.3 102 ROA 11.3 10.3 10.8 100 98 ROE 31.9 32.6 39.2 96 Debt%Equity 47.2 63.2 81.4 94 Payout Ratio 58.1 60.0 57.0 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 70,324 68,922 63,963 60,704 62,182 72,944 Revenue Growth 2.0 7.8 5.4 (2.4) (14.8) 15.3 Cost of Goods Sold * 37,485 36,736 33,976 31,879 32,658 34,281 Gross Margin 46.7 46.7 46.9 47.5 47.5 53.0 Operating Income 18,088 17,474 16,322 16,223 17,242 16,303 Operating Margin 25.7 25.4 25.5 26.7 27.7 22.4 Interest Expense 1,331 1,556 1,417 1,367 1,424 1,659 Pretax Income 16,536 15,435 14,004 14,760 18,098 14,284 Tax Rate 26.3 29.9 32.4 34.9 35.5 37.9 Net Income before Extraordinary Items 12,022 10,668 9,420 9,204 11,102 8,566 Net Income Growth 12.7 13.2 2.3 (17.1) 29.6 0.7 Net Margin 17.1 15.5 14.7 15.2 17.9 11.7 EPS excl Extraordinary Items 4.29 3.83 3.42 3.39 3.91 2.91 EPS Growth 12.0 11.8 0.9 (13.2) 34.3 3.5 Shares Outstanding 2,794.3 2,777.2 2,744.2 2,714.6 2,717.2 2,868.1 Dividends per Share 2.49 2.30 2.12 1.98 1.83 1.67 Payout Ratio 58.1 60.0 61.8 58.4 46.8 57.2 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 26,152 25,781 25,901 21,382 17,441 17,275 Total Assets 104,270 107,949 101,648 96,175 87,540 84,968 Current Liabilities 25,427 26,158 23,574 21,393 19,082 20,653 Long-Term Debt 14,498 17,868 18,683 21,163 21,355 18,651 Total Debt 18,699 24,134 22,980 24,539 23,320 22,102 Current Ratio 1.03 0.99 1.10 1.00 0.91 0.84 Quick Ratio 0.55 0.58 0.67 0.55 0.44 0.40 EBIT / Interest 13.4 10.9 10.9 11.8 13.7 9.6 Total Assets/Equity 2.6 3.0 3.3 3.8 4.5 4.3 L-T Debt % Total Capitalization 26.8 33.4 37.8 45.8 52.3 48.7 Inventory Turnover 3.3 3.6 3.5 3.4 3.6 3.9 Accounts Receivable Turnover 12.3 12.4 11.6 11.7 12.1 14.3 Total Asset Turnover 0.7 0.7 0.6 0.7 0.7 0.9 Return on Assets 11.3 10.2 9.5 10.0 12.9 10.4 Return on Equity 31.9 32.1 33.8 41.3 56.8 49.5
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Altria Group Inc. (MO-US) 68.63 144,480 16.8 8.9 9.9 1.6 British American Tobacco p.l.c. (BATS-GB) 32.89 67,090 17.0 5.3 15.5 3.5 Reynolds American Inc. (RAI-US) 64.61 19,060 16.7 2.6 13.6 2.2 Altadis, S.A. (ALT-ES) 65.75 16,643 27.0 18.3 16.0 1.0
Altria Group Inc. (MO-US) Altria Group, Inc..is the parent company of Philip Morris International, Philip Morris USA and Philip Morris Capital Corporation, and is one of the world's largest tobacco corporations.. Philip Morris USA Inc manufactures and markets cigarettes in the United States. Philip Morris International Inc manufactures and markets cigarettes internationally. The major brands include Marlboro, Philip Morris, Parliament, Virginia Slims and others. In addition, Altria Group has a 28.6% economic and voting interest in SABMiller, plc, as a result of the 2002 Miller Brewing Company merger into South African Breweries plc, which formed SABMiller plc, the world's second-largest brewer. In March 2007, all shares of Kraft Foods Inc. owned by Altria were spun-off to Altria's shareholders and as a result, Altria no longer holds any interest in Kraft Foods.
Aug 28 2007 MIRAE ASSET RESEARCH 31 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Anheuser-Busch Cos. Inc. (BUD-US) BUD-US 035229103 2033004 NYSE Common stock Current 52 Wk YTD Market 52 Wk Headqrters St Louis Missouri USA +1 314 577-2000 Price Range PChg Val (M) Beta Web Site http://www.anheuser-busch.com 48.000 55 - 46 -2.4 35,979 0.64 Industry Beverages: Alcoholic (2425) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 64.4 % Insider Hldgs 1.0 % 18.3 9.2 14.3 2.2 2.8 Conference Presentation 06-Sep-2007 12:00AM (EST) Ratios Relative Strength vs. S&P 500 Stock Index Latest 3 Yr Avg 5 Yr Avg 104 Gross Margin 35.3 37.2 38.4 102 EBITD Margin 23.6 25.7 26.8 100 Net Margin 12.5 13.2 13.7 98 R&D%Sales 96 ROA 11.9 12.6 13.2 94 ROE 54.0 66.2 65.0 92 90 Debt%Equity 194.3 247.7 245.6 88 Payout Ratio 44.7 40.7 37.9 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 15,717 15,036 14,934 14,147 13,566 12,912 Revenue Growth 4.5 0.7 5.6 4.3 5.1 5.3 Cost of Goods Sold * 10,165 9,580 8,983 8,449 8,131 7,950 Gross Margin 35.3 36.3 39.9 40.3 40.1 38.4 Operating Income 2,720 2,726 3,361 3,199 2,980 2,705 Operating Margin 17.3 18.1 22.5 22.6 22.0 21.0 Interest Expense 434 435 405 377 351 334 Pretax Income 2,277 2,192 2,999 2,824 2,624 2,378 Tax Rate 39.5 38.8 38.8 38.7 39.7 39.0 Net Income before Extraordinary Items 1,965 1,839 2,240 2,076 1,934 1,705 Net Income Growth 6.9 (17.9) 7.9 7.3 13.5 9.9 Net Margin 12.5 12.2 15.0 14.7 14.3 13.2 EPS excl Extraordinary Items 2.53 2.35 2.77 2.48 2.20 1.89 EPS Growth 7.7 (15.2) 11.7 12.7 16.4 11.8 Shares Outstanding 766.1 777.7 785.0 813.1 846.6 879.1 Dividends per Share 1.13 1.03 0.93 0.83 0.75 0.68 Payout Ratio 44.7 43.8 33.6 33.5 34.1 35.7 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 1,830 1,759 1,818 1,630 1,505 1,550 Total Assets 16,377 16,555 16,173 14,690 14,120 13,945 Current Liabilities 2,246 1,983 1,969 1,857 1,788 1,737 Long-Term Debt 7,654 7,972 8,279 7,285 6,603 5,984 Total Debt 7,654 7,972 8,279 7,285 6,603 5,984 Current Ratio 0.81 0.89 0.92 0.88 0.84 0.89 Quick Ratio 0.51 0.56 0.57 0.56 0.53 0.55 EBIT / Interest 6.2 6.0 8.4 8.5 8.5 8.1 Total Assets/Equity 4.2 5.0 6.1 5.4 4.6 3.4 L-T Debt % Total Capitalization 66.0 70.5 75.6 72.9 68.4 59.6 Inventory Turnover 15.1 14.2 14.1 14.7 14.1 13.2 Accounts Receivable Turnover 22.4 21.8 21.9 21.8 21.7 21.1 Total Asset Turnover 1.0 0.9 1.0 1.0 1.0 1.0 Return on Assets 11.9 11.2 14.5 14.4 13.8 12.6 Return on Equity 54.0 61.2 83.3 72.0 54.4 41.6
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Anheuser-Busch Cos. Inc. (BUD-US) 48.00 35,979 18.3 9.2 14.3 2.2 SABMiller plc (SAB-GB) 25.95 41,041 22.4 2.8 9.0 2.6 Heineken N.V. (HEIA-NL) 61.34 30,031 18.3 4.4 8.2 1.9 Molson Coors Brewing Company (TAP-US) 85.88 7,702 17.3 1.2 9.2 1.3
Anheuser-Busch Cos. Inc. (BUD-US) Anheuser-Busch Companies, Inc.. Anheuser-Busch Companies, Inc. (ABC) is the holding company of Anheuser-Busch, Incorporated (ABI), a beer brewer, and is also the parent corporation to a number of subsidiaries that conduct various other business operations. ABC's operations comprise four segments: domestic beer, international beer, packaging, and entertainment. The Group's principal activities are categorized into five business segments. The Domestic beer segment consists of the Group's United States beer manufacturing and wholesale operations. The International beer segment consists of the Group's export sales and overseas beer production and marketing operations. The Entertainment segment consists of the Group's SeaWorld, Busch Gardens and other adventure park operations. The Packaging segment is comprised of the Group's aluminum beverage can and lid manufacturing, aluminum recycling, label printing, crown and closure liner material manufacturing and glass manufacturing operations. The Other segment is comprised of the Group's real estate development, transportation and communications businesses.
Aug 28 2007 MIRAE ASSET RESEARCH 32 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Archer Daniels Midland Co. (ADM-US) ADM-US 039483102 2047317 NYSE Common stock Current 52 Wk YTD Market 52 Wk Headqrters Decatur Illinois USA +1 217 424-5200 Price Range PChg Val (M) Beta Web Site http://www.admworld.com 32.860 42 - 30 2.8 21,449 1.25 Industry Agricultural Commodities/Milling (2225) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 67.3 % Insider Hldgs 3.7 % 10.0 2.0 7.5 0.5 1.4 Q1 2008 Earnings Release (Proje 30-Oct-2007 12:00AM Ratios Relati ve Strength vs. S&P 500 Stock Index Latest 3 Yr Avg 5 Yr Avg 190 Gross Margin 7.4 7.5 6.9 180 EBITD Margin 6.2 6.3 5.7 170 160 Net Margin 4.9 3.8 2.8 150 R&D%Sales 0.1 0.1 140 ROA 6.0 4.4 130 ROE 13.7 10.1 120 Debt%Equity 48.6 61.1 110 Payout Ratio 19.2 23.3 100 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 6/07 6/06 6/05 6/04 6/03 6/02 Net Sales 44,018 36,596 35,944 36,151 30,708 23,454 Revenue Growth 20.3 1.8 (0.6) 17.7 30.9 17.0 Cost of Goods Sold * 40,781 33,554 33,470 33,952 28,968 21,687 Gross Margin 7.4 8.3 6.9 6.1 5.7 7.5 Operating Income 2,042 1,869 1,393 1,197 792 940 Operating Margin 4.6 5.1 3.9 3.3 2.6 4.0 Interest Expense 434.0 365.2 326.6 342.0 360.0 356.0 Pretax Income 2860 1681 1288 537 565 657 Tax Rate 34.7 32.3 36.7 41.6 31.9 31.7 Net Income before Extraordinary Items 2162 1312 1044 495 451 511 Net Income Growth 64.8 25.6 111.1 9.7 (11.7) 33.3 Net Margin 4.9 3.6 2.9 1.4 1.5 2.2 EPS excl Extraordinary Items 22111 EPS Growth 55.1 45.8 18.9 25.0 10.8 Shares Outstanding 655.7 650.4 650.7 644.8 650.0 Dividends per Share 00000 Payout Ratio 16.5 21.8 28.0 26.7 30.6 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 6/07 6/06 6/05 6/04 6/03 6/02 Current Assets 11,826 9,711 10,339 8,422 7,363 Total Assets 21,269 18,598 19,369 17,183 15,416 Current Liabilities 6,165 5,367 6,750 5,147 4,719 Long-Term Debt 4,050 3,530 3,740 3,872 3,111 Total Debt 4,680 4,179 5,671 5,183 4,385 Current Ratio 1.92 1.81 1.53 1.64 1.56 Quick Ratio 1.16 1.08 0.85 0.95 0.87 EBIT / Interest 7.6 5.6 4.9 2.6 2.6 2.8 Total Assets/Equity 2.2 2.2 2.5 2.4 2.3 L-T Debt % Total Capitalization 29.2 29.5 32.7 35.4 31.5 Inventory Turnover 7.8 7.9 8.3 8.5 7.4 Accounts Receivable Turnover 8.5 8.8 9.8 10.0 8.9 Total Asset Turnover 1.8 1.9 2.0 1.9 1.6 Return on Assets 6.6 5.5 2.7 2.8 3.4 Return on Equity 14.4 12.9 6.7 6.5 7.8
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Archer Daniels Midland Co. (ADM-US) 32.86 21,449 10.0 2.0 7.5 0.5 Bunge Limited (BG-US) 86.67 10,473 17.7 1.9 18.5 0.3 Corn Products International, Inc. (CPO-US) 44.80 3,353 20.0 2.3 13.9 1.1 Cargill, Incorporated (Private)
Archer Daniels Midland Co. (ADM-US) Archer-Daniels-Midland Co. The Group's principal activities are to procure, transport, store, process and merchandise of agricultural commodities and products. The Group operates in four segments: Oilseeds Processing, Corn Processing, Agricultural Services and Other segment. The Oilseeds Processing segment processes oilseeds into vegetable oils and meals principally for the food and feed industries. The Corn Processing segment is engaged in wet milling and dry milling corn operations. The Agricultural Services segment utilizes the Company's extensive grain elevator and transportation network to buy, store, clean and transport agricultural commodities. In June 2007, it announced that it has entered into an agreement to acquire the business operations of Fasco Mills Company, headquartered in Mendota, Illinois is a family-owned grain and feed company operating one of the largest networks of grain elevators and rail shipping terminals in Illinois.
Aug 28 2007 MIRAE ASSET RESEARCH 33 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Ajinomoto Co. Inc. (2802) 2802 6010906 Tokyo Common stock Current 52 Wk YTD Market 52 Wk Headqrters Chuo-Ku 104-8315 Tokyo Japan +81 3 5250 8161 Price Range PChg Val (M) Beta Web Site http://www.ajinomoto.co.jp 1381.000 1640 - 1230 -12.2 894,322 0.59 Industry Food: Specialty/Candy (2410) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 10.9 % Insider Hldgs 19.6 % 25.4 1.5 14.4 0.8 1.2 Interim 2007 Earnings Release 09-Nov-2007 12:00AM (EST) EPS Estimates Relative Strength vs. Japan FY 1FY 2FY 3 110 3/08 3/09 3/10 105 Mean 54.14 64.03 74.24 High 62.80 76.13 92.34 100 Low 49.50 58.50 66.90 95 Exp EPS Chg 15.9 18.3 16.0 90 1 Mo Revision 1.0 -0.1 0.5 85 3 Mo Revision -7.8 -7.9 -5.4 FY 1FY 2FY 3 80
Forward P/E 25.5 21.6 18.6 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Billions) 3/07 3/06 3/05 3/04 3/03 3/02 Net Sales 1,159 1,107 1,073 1,040 988 944 Revenue Growth 4.7 3.1 3.2 5.2 4.7 3.9 Cost of Goods Sold * 840 806 771 753 723 684 Gross Margin 27.5 27.2 28.1 27.6 26.8 27.5 Operating Income 64 60 71 65 54 49 Operating Margin 5.5 5.5 6.6 6.3 5.5 5.2 Interest Expense 5.0 3.3 3.0 3.0 3.4 4.7 Pretax Income 56 57 82 67 65 58 Tax Rate 39.9 33.8 42.0 41.3 44.5 40.0 Net Income before Extraordinary Items 30 35 45 36 33 31 Net Income Growth (13.4) (22.1) 23.5 9.3 5.5 Net Margin 2.6 3.2 4.2 3.5 3.4 3.3 EPS excl Extraordinary Items 47 54 69 56 51 48 EPS Growth (12.9) (22.0) 23.8 9.5 4.9 Shares Outstanding 0.6 0.6 0.6 0.6 0.6 0.6 Dividends per Share 151413121110 Payout Ratio 32.1 26.1 18.9 21.6 21.7 20.7 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Billions) & Ratios 3/07 3/06 3/05 3/04 3/03 3/02 Current Assets 460 426 414 378 365 357 Total Assets 1,054 991 891 854 830 812 Current Liabilities 266 238 231 226 306 266 Long-Term Debt 108 110 91 102 52 75 Total Debt 151 146 126 144 151 156 Current Ratio 1.73 1.79 1.80 1.67 1.19 1.34 Quick Ratio 1.27 1.34 1.37 1.24 0.87 0.95 EBIT / Interest 12.1 18.4 28.1 23.6 20.4 13.5 Total Assets/Equity 1.9 1.9 1.9 2.0 2.1 2.1 L-T Debt % Total Capitalization 16.1 17.3 16.2 19.2 11.8 16.5 Inventory Turnover 7.3 7.8 7.9 7.7 7.1 6.8 Accounts Receivable Turnover 5.8 5.8 5.9 5.8 5.7 5.8 Total Asset Turnover 1.1 1.2 1.2 1.2 1.2 1.2 Return on Assets 3.0 3.7 5.1 4.3 4.0 3.9 Return on Equity 5.5 7.0 10.0 8.9 8.6 8.5
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Ajinomoto Co. Inc. (2802) 1381.00 894,322 25.4 1.5 14.4 0.8 Archer Daniels Midland Company (ADM-US) 3,821.13 2,494,159 10.0 2.0 7.5 0.5 McCormick & Company, Incorporated (MKC-US) 4,250.22 551,213 24.4 4.7 18.3 1.7 The Nisshin OilliO Group, Ltd. (2602) 644.00 111,218 20.3 1.0 10.3 0.4
Ajinomoto Co. Inc. (2802) Ajinomoto Company Incorporated. The Group's principal activities are the manufacture of seasonings, edible oil and other food and beverage products. The operations are carried out through the following divisions: Domestic food; Overseas food products; Amino acids; Pharmaceuticals and Other. Domestic food products and Overseas food products include Ajinomoto and other seasonings, edible oils, processed food, beverages, daily products. The company also provides amino acids, such as nucleotides, feed-use amino acids, amino acids for pharmaceuticals and foods, pharmaceutical fine chemicals, aspartame, and specialty chemicals. In addition, Ajinomoto Co. offers pharmaceuticals and medical foods for infusions, clinical nutrition, and dialysis/gastrointestinal diseases. It also provides packaging materials, and distribution and other services including distribution, engineering and packing. In July 2007, it announced plans to introduce Capsiate Natura, a capsinoid dietary supplement, into the United States market.
Aug 28 2007 MIRAE ASSET RESEARCH 34 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Asahi Breweries Ltd. (2502) 2502 6054409 Tokyo Common stock Current 52 Wk YTD Market 52 Wk Headqrters Sumida-Ku 130-8602 Tokyo Japan +81 3 5608 5116 Price Range PChg Val (M) Beta Web Site http://www.asahibeer.co.jp 1641.000 2050 - 1566 -13.9 793,564 0.53 Industry Beverages: Alcoholic (2425) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 19.8 % Insider Hldgs 25.7 % 17.7 1.6 7.2 0.5 1.2 Q3 2007 Earnings Release (Proje 30-Oct-2007 12:00AM EPS Estimates Relati ve Strength vs. Japan FY 1FY 2FY 3 12/07 12/08 12/09 110 Mean 93.04 95.30 99.12 105
High 97.40 103.68 108.00 100 Low 86.00 85.00 81.00 95 Exp EPS Chg -1.0 2.4 4.0 1 Mo Revision -0.7 -2.7 -3.6 90 3 Mo Revision -1.4 -3.9 -6.6 85
FY 1FY 2FY 3 80 Forward P/E 17.6 17.2 16.6 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Billions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 1,446 1,430 1,444 1,400 1,375 1,433 Revenue Growth 1.1 (1.0) 3.1 1.8 (4.1) 2.4 Cost of Goods Sold * 960 960 984 964 961 1,009 Gross Margin 33.6 32.9 31.9 31.2 30.1 29.6 Operating Income 89 92 103 81 71 79 Operating Margin 6.1 6.4 7.1 5.8 5.2 5.5 Interest Expense 4.4 4.1 4.3 4.8 5.9 8.1 Pretax Income 81 76 58 49 32 19 Tax Rate 43.5 44.9 46.0 51.9 65.3 32.6 Net Income before Extraordinary Items 45 40 31 23 15 14 Net Income Growth 12.3 30.3 31.8 57.3 8.4 Net Margin 3.1 2.8 2.1 1.7 1.1 0.9 EPS excl Extraordinary Items 94 82 63 47 29 27 EPS Growth 14.4 31.5 33.6 61.9 7.0 Shares Outstanding 0.5 0.5 0.5 0.5 0.5 0.5 Dividends per Share 191715131312 Payout Ratio 20.2 20.7 24.0 27.8 45.0 44.4 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Billions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 429 385 421 393 404 413 Total Assets 1,269 1,199 1,221 1,206 1,247 1,297 Current Liabilities 561 500 532 542 597 619 Long-Term Debt 181 204 239 251 259 238 Total Debt 340 339 351 387 463 417 Current Ratio 0.76 0.77 0.79 0.73 0.68 0.67 Quick Ratio 0.60 0.60 0.63 0.56 0.52 0.52 EBIT / Interest 19.4 19.6 14.6 11.1 6.5 3.3 Total Assets/Equity 2.7 2.6 2.9 3.0 3.2 3.4 L-T Debt % Total Capitalization 27.5 30.9 36.4 38.7 40.1 38.2 Inventory Turnover 10.7 11.2 11.3 10.4 10.1 10.7 Accounts Receivable Turnover 5.6 5.6 5.6 5.6 5.5 5.7 Total Asset Turnover 1.2 1.2 1.2 1.1 1.1 1.1 Return on Assets 3.6 3.3 2.5 1.9 1.2 1.0 Return on Equity 9.6 9.1 7.5 5.9 3.8 3.7
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Asahi Breweries Ltd. (2502) 1641.00 793,564 17.7 1.6 7.2 0.5 Kirin Holdings Company, Limited (2503) 1,538.00 1,514,174 28.6 1.4 14.2 0.9 Sapporo Holdings Limited (2501) 632.00 248,990 218.7 2.1 15.5 0.6 Suntory Ltd. (Private)
Asahi Breweries Ltd. (2502) Asahi Breweries Limited. The Group's principal activity is the brewing of beer and production of other alcoholics such as wine and spirits. The Group is also engaged in the production of soft drinks, foods and pharmaceuticals primarily in Japan, Europe, Asia, and the United States. It offers various alcoholic beverage products, including beer under ‘Asahi Super Dry’ brand and happoshu under ‘Asahi Honnama’ brand, as well as provides shochu, fruit wine, beer-taste, low-alcoholic beverages, ready to drink beverages, whisky and spirits, and wines under ‘Asahi Shinnama 3’, ‘Asahi Gubinama’, and ‘Asahi Gokuuma’ brand names. The company’s soft drink products comprise canned coffee, tea-based beverages, carbonated drinks, and other soft drinks. Its food and healthcare products consist of milk powder for infants and commercial use, baby food, skincare products, breath mint tablets, snack bars, quasi-drug made from brewer’s yeast, and supplement tablets. Other activities include real estate business, operation of restaurants, wholesale of distribution and logistics. The operations are carried out through the following divisions: Alcoholic drinks; Soft drinks; Foods and Pharmaceuticals and Other.
Aug 28 2007 MIRAE ASSET RESEARCH 35 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
British American Tobacco PLC (BATS-GB) BATS-GB 0287580 London Common stock Current 52 Wk YTD Market 52 Wk Headqrters London UK +44 20 7845 1000 Price Range PChg Val (M) Beta Web Site http://www.bat.com 16.400 17 - 14 14.8 33,449 0.35 Industry Tobacco (2430) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 50.8 % Insider Hldgs 31.0 % 17.0 5.3 15.5 3.5 3.6 Q3 2007 Earnings Release 01-Nov-2007 12:00AM (EST) EPS Estimates Relati ve Strength vs. Utd Kingdom FY 1FY 2FY 3
12/07 12/08 12/09 120 Mean 1.06 1.15 1.25 High 1.08 1.20 1.31 115 Low 1.00 1.10 1.19 110 Exp EPS Chg 6.7 9.4 8.6 1 Mo Revision 0.7 0.5 0.5 105 3 Mo Revision 0.8 0.6 0.7 FY 1FY 2FY 3 100 Forward P/E 15.5 14.2 13.1 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 9,762 9,325 10,764 10,570 10,600 11,371 Revenue Growth 4.7 (13.4) 1.8 (0.3) (6.8) 4.2 Cost of Goods Sold * 4,699 4,543 8,811 8,388 8,459 9,161 Gross Margin 51.9 51.3 18.1 20.6 20.2 19.4 Operating Income 2,696 2,489 1,886 2,109 2,079 2,151 Operating Margin 27.6 26.7 17.5 20.0 19.6 18.9 Interest Expense 410 373 369 336 333 409 Pretax Income 2,320 2,167 1,745 1,496 1,996 1,946 Tax Rate 30.9 31.8 37.5 48.4 38.7 43.3 Net Income before Extraordinary Items 1,896 1,771 1,098 631 1,152 1,010 Net Income Growth 7.1 61.3 74.0 (45.2) 14.1 50.7 Net Margin 19.4 19.0 10.2 6.0 10.9 8.9 EPS excl Extraordinary Items 0.92 0.85 0.52 0.27 0.51 0.44 EPS Growth 8.9 61.9 93.8 (47.1) 14.6 55.9 Shares Outstanding 2,068.8 2,096.1 2,139.8 2,076.8 2,181.6 2,179.4 Dividends per Share 0.56 0.47 0.42 0.39 0.35 0.32 Payout Ratio 60.7 55.6 80.3 144.1 69.1 72.0 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 5,391 5,904 5,740 7,137 6,247 6,824 Total Assets 17,503 18,757 17,625 18,710 16,079 17,070 Current Liabilities 4,453 5,836 4,800 6,454 4,716 5,833 Long-Term Debt 5,568 5,054 5,955 6,089 4,618 4,642 Total Debt 6,626 7,256 7,097 7,610 5,314 6,150 Current Ratio 1.21 1.01 1.20 1.11 1.32 1.17 Quick Ratio 0.75 0.62 0.75 0.71 0.77 0.70 EBIT / Interest 6.7 6.8 5.7 5.5 7.0 5.8 Total Assets/Equity 2.7 2.8 3.4 4.4 3.2 3.7 L-T Debt % Total Capitalization 46.3 43.3 53.3 58.6 48.0 50.2 Inventory Turnover 2.2 2.1 3.7 3.2 3.2 3.2 Accounts Receivable Turnover 5.9 6.5 7.5 7.4 8.6 8.8 Total Asset Turnover 0.5 0.5 0.6 0.6 0.6 0.7 Return on Assets 10.5 9.7 6.0 3.6 7.0 5.8 Return on Equity 29.0 29.9 23.1 13.6 24.0 20.9
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales British American Tobacco PLC (BATS-GB) 16.40 33,449 17.0 5.3 15.5 3.5 Japan Tobacco Inc. (2914) 2,581.05 24,727 29.0 2.8 16.3 1.2 Gallaher Group Plc (Private) Philip Morris International Inc. (Private)
British American Tobacco PLC (BATS-GB) British American Tobacco p.l.c. is the second largest listed tobacco company in the world. The Group's principal activity is manufacturing, marketing and selling cigarettes and other tobacco products. The Group's operations are carried out through 689 billion cigarettes through 52 cigarette factories in 44 countries and have four separate factories in four countries manufacturing cigars, roll-your-own and pipe tobacco. Product brands include Kent, Dunhill, Lucky Strike, Pall Mall, Vogue, Viceroy, Rothmans, Kool, Benson & Hedges, State Express 555, Peter Stuyvesant, Jockey Club, Derby, Winfield, Star Filter, Hollywood, Free, du Maurier, Players, Matinee, MS, Sax, Boots, Raleigh, Montana, Wills Gold Flake, Parisienne, Belmont, Consul, Carlton and John Player Gold Leaf. The Group operates in the United Kingdom, Belgium, Cyprus, the Czech Republic, Finland, France, Germany, Greece, Hungary, Italy, the Netherlands, Poland, the United States of America, Russia, Serbia, Spain, Switzerland, Ukraine, Uzbekistan, Canada and Japan. In 2003, BAT acquired Ente Tabacchi Italiani (ETI) S.p.A, Italy's state tobacco company, which would bring significant opportunities to compete and grow ETI's local brands and BAT's international brands.
Aug 28 2007 MIRAE ASSET RESEARCH 36 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Coca-Cola Co. (KO-US) KO-US 191216100 2206657 NYSE Common stock Current 52 Wk YTD Market 52 Wk Headqrters Atlanta Georgia USA +1 404 676-2121 Price Range PChg Val (M) Beta Web Site http://www.cocacola.com 53.980 57 - 44 11.9 124,887 0.62 Industry Beverages: Non-Alcoholic (2420) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 66.9 % Insider Hldgs 5.1 % 24.0 6.6 19.0 4.8 2.5 Conference Presentation 06-Sep-2007 3:00PM (EST)
Ratios Relative Strength vs. S&P 500 Stock Index Latest 3 Yr Avg 5 Yr Avg 104 Gross Margin 66.1 65.2 64.4 102 EBITD Margin 30.9 31.1 31.3 100 Net Margin 21.1 21.4 20.5 98 96 R&D%Sales 94 ROA 17.2 16.7 16.4 92 ROE 30.5 31.0 31.2 90 Debt%Equity 27.1 35.7 38.2 88 Payout Ratio 57.4 54.1 54.0 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 24,088 23,104 21,962 21,044 19,564 20,092 Revenue Growth 4.3 5.2 4.4 7.6 (2.6) (1.8) Cost of Goods Sold * 8,160 8,242 7,638 7,814 7,105 6,044 Gross Margin 66.1 64.3 65.2 62.9 63.7 69.9 Operating Income 6,497 6,123 6,103 5,730 5,458 5,352 Operating Margin 27.0 26.5 27.8 27.2 27.9 26.6 Interest Expense 220 240 196 178 199 289 Pretax Income 6,476 6,006 5,601 5,089 5,115 5,518 Tax Rate 23.1 30.3 24.5 22.6 29.8 30.6 Net Income before Extraordinary Items 5,080 4,872 4,847 4,347 3,417 3,979 Net Income Growth 4.3 0.5 11.5 27.2 (14.1) 82.8 Net Margin 21.1 21.1 22.1 20.7 17.5 19.8 EPS excl Extraordinary Items 2.16 2.04 2.00 1.77 1.38 1.60 EPS Growth 5.9 2.0 13.0 28.3 (13.7) 81.8 Shares Outstanding 2,318.0 2,369.0 2,409.3 2,441.5 2,471.0 2,486.2 Dividends per Share 1.24 1.12 1.00 0.88 0.80 0.72 Payout Ratio 57.4 54.9 50.0 49.7 58.0 45.0 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 8,441 10,250 12,094 8,396 7,352 7,171 Total Assets 29,795 29,235 31,003 26,896 24,143 22,005 Current Liabilities 8,890 9,836 10,971 7,886 7,341 8,429 Long-Term Debt 1,314 1,154 1,157 2,517 2,701 1,219 Total Debt 4,582 5,700 7,178 5,423 5,356 5,118 Current Ratio 0.95 1.04 1.10 1.06 1.00 0.85 Quick Ratio 0.76 0.90 0.97 0.91 0.83 0.73 EBIT / Interest 30.4 26.0 29.6 29.6 26.7 20.1 Total Assets/Equity 1.8 1.8 1.9 1.9 2.0 1.9 L-T Debt % Total Capitalization 7.2 6.6 6.8 15.2 18.6 9.7 Inventory Turnover 5.3 5.8 5.7 6.1 6.0 5.7 Accounts Receivable Turnover 9.9 10.4 10.3 10.0 9.8 11.0 Total Asset Turnover 0.8 0.8 0.8 0.8 0.8 0.9 Return on Assets 17.2 16.2 16.7 17.0 14.8 18.7 Return on Equity 30.5 30.2 32.3 33.6 29.5 38.5
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Coca-Cola Co. (KO-US) 53.98 124,887 24.0 6.6 19.0 4.8 Nestlé S.A. (NESN-CH) 414.54 159,070 21.1 3.8 11.8 1.9 PepsiCo, Inc. (PEP-US) 67.91 109,728 19.2 7.0 16.4 3.0 Cadbury Schweppes plc (CBRY-GB) 11.33 23,837 41.9 3.1 13.2 1.9
Coca-Cola Co. (KO-US) Coca-Cola Company (The). The Group's principal activity is to manufacture, distribute and market nonalcoholic beverage concentrates and syrups. The products of the Group include carbonated soft drinks and also various kinds of non carbonated beverages. The Group sells these beverages, concentrates and syrups to bottling and canning operations, distributors, fountain wholesalers and retailers. The other products marketed and distributed by the Group include juice drinks, sports drinks, water products, teas, coffees and other beverage products. The Group also has ownership interests in various canning and bottling operations. The operations of the Group are conducted in the United States, Europe, Eurasia, Middle East, Africa, Latin America and Asia. Its brands are Diet Coke, Fanta and Sprite. The Group acquired Kerry Beverages Limited, Apollinaris GmbH in September 2006 and TJC Holdings (Pty) Ltd in January 2006. On May 25, 2007, Coca-Cola announced it would purchase Glaceau, a maker of flavored vitamin- enhanced drinks, flavored waters, and energy drinks, for $4.1 billion in cash.
Aug 28 2007 MIRAE ASSET RESEARCH 37 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Campbell Soup Co. (CPB-US) CPB-US 134429109 2162845 NYSE Common stock Current 52 Wk YTD Market 52 Wk Headqrters Camden New Jersey USA +1 856 342-4800 Price Range PChg Val (M) Beta Web Site http://www.campbellsoup.com 37.180 43 - 35 -4.4 14,405 0.83 Industry Food: Major Diversified (2405) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 42.7 % Insider Hldgs 39.5 % 17.5 8.8 12.6 1.8 2.2 Q4 2007 Earnings Release (Proje 06-Sep-2007 12:00AM (EST) Ratios Relative Strength vs. S&P 500 Stock Index Latest 3 Yr Avg 5 Yr Avg 120 Gross Margin 41.9 41.2 41.9 EBITD Margin 19.6 19.6 20.3 115
Net Margin 10.3 9.6 9.3 110 R&D%Sales 1.3 1.3 1.3 105 ROA 10.3 10.3 10.1 ROE 49.7 72.8 169.2 100 Debt%Equity 181.7 267.0 428.2 95
Payout Ratio 41.3 39.6 41.2 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 7/06 7/05 7/04 7/03 7/02 7/01 Net Sales 7,343 7,548 7,109 6,678 6,133 6,664 Revenue Growth (2.7) 6.2 6.5 8.9 (8.0) 6.3 Cost of Goods Sold * 4,268 4,493 4,187 3,806 3,502 3,198 Gross Margin 41.9 40.5 41.1 43.0 42.9 52.0 Operating Income 1,153 1,204 1,132 1,141 1,023 1,230 Operating Margin 15.7 16.0 15.9 17.1 16.7 18.5 Interest Expense 165.0 184.0 174.0 186.0 190.0 219.0 Pretax Income 1001 1030 947 924 798 990 Tax Rate 24.6 31.4 31.7 32.3 34.2 34.1 Net Income before Extraordinary Items 755 707 647 626 525 649 Net Income Growth 6.8 9.3 3.4 19.2 (19.1) (9.1) Net Margin 10.3 9.4 9.1 9.4 8.6 9.7 EPS excl Extraordinary Items 222212 EPS Growth (2.7) 14.3 2.5 18.0 (11.9) (4.4) Shares Outstanding 402.0 408.0 408.0 410.0 410.0 409.0 Dividends per Share 111111 Payout Ratio 41.3 37.5 39.9 40.1 47.4 55.1 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 7/06 7/05 7/04 7/03 7/02 7/01 Current Assets 2,112 1,512 1,481 1,290 1,199 1,221 Total Assets 7,869 6,770 6,675 6,205 5,721 5,927 Current Liabilities 2,962 2,002 2,339 2,783 2,678 3,120 Long-Term Debt 2,116 2,542 2,543 2,249 2,449 2,243 Total Debt 3,213 2,993 3,353 3,528 3,645 4,049 Current Ratio 0.71 0.76 0.63 0.46 0.45 0.39 Quick Ratio 0.47 0.36 0.29 0.21 0.21 0.20 EBIT / Interest 7.1 6.6 6.4 6.0 5.2 5.5 Total Assets/Equity 4.5 5.3 7.6 16.0 L-T Debt % Total Capitalization 54.5 66.7 74.4 85.3 104.9 112.4 Inventory Turnover 5.7 5.7 5.6 5.7 5.7 5.5 Accounts Receivable Turnover 14.6 15.1 15.7 16.1 14.3 15.1 Total Asset Turnover 1.0 1.1 1.1 1.1 1.1 1.2 Return on Assets 10.3 10.5 10.0 10.5 9.0 11.7 Return on Equity 49.7 66.0 102.6 458.6
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Campbell Soup Co. (CPB-US) 37.18 14,405 17.5 8.8 12.6 1.8 Kraft Foods Inc. (KFT-US) 32.10 50,612 18.9 1.8 12.0 1.4 General Mills, Inc. (GIS-US) 56.80 18,755 17.9 3.6 11.4 1.6 H. J. Heinz Company (HNZ-US) 45.22 14,562 19.0 7.9 12.7 1.6
Campbell Soup Co. (CPB-US) Campbell Soup Company. The Group's principal activity is to manufacture and market soups, juice beverages, sauces, biscuits and confectionery products through four segments. The U.S. Soup, Sauces and Beverages segment comprises condensed and ready-to-serve soups; Swanson broth and canned poultry; Prego pasta sauce; Pace Mexican sauce; Campbell's Chunkychili; Campbell's canned pasta, gravies and beans; Campbell's Supper Bakes meal kits; V8 vegetable juice; V8 Splash juice beverages; and Campbell's tomato juice. The Baking and Snacking segment includes Pepperidge Farm cookies, crackers, bakery and frozen products in U.S. retail; Arnott's biscuits in Australia and Asia Pacific. The International segment consists of operations outside of North America. Other includes Godiva Chocolatier worldwide. Wal-Mart Stores is the largest customer of the Group. The trademarks of the Group include Campbell's, Liebig, Pepperidge Farm, V8 Splash, Prego, Swanson, Franco-American, Bla Band and McDonnells. Campbell Soup Co. may sell its Godiva chocolate brand in 2007 to focus on increasing global sales of healthier soups, snacks and beverages.
Aug 28 2007 MIRAE ASSET RESEARCH 38 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
ConAgra Foods Inc. (CAG-US) CAG-US 205887102 2215460 NYSE Common stock Current 52 Wk YTD Market 52 Wk Headqrters Omaha Nebraska USA +1 402 595-4000 Price Range PChg Val (M) Beta Web Site http://www.conagra.com 25.250 28 - 23 -6.5 12,368 0.65 Industry Food: Major Diversified (2405) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 73.7 % Insider Hldgs 0.2 % 18.7 2.7 12.4 1.0 2.9 Q1 2008 Earnings Release (Proje 21-Sep-2007 12:00AM Ratios Relative Strength vs. S&P 500 Stock Index Latest 3 Yr Avg 5 Yr Avg 110
Gross Margin 26.5 24.1 22.7 105 EBITD Margin 13.7 12.8 12.0 100 Net Margin 5.7 5.1 5.0 R&D%Sales 0.6 0.5 0.5 95 ROA 5.7 5.2 5.3 90
ROE 14.8 13.7 15.2 85 Debt%Equity 75.5 81.6 97.2 80 Payout Ratio 84.5 79.0 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 5/07 5/06 5/05 5/04 5/03 5/02 Net Sales 12,028 11,579 14,567 14,522 19,839 27,630 Revenue Growth 3.9 (20.5) 0.3 (26.8) (28.2) 1.6 Cost of Goods Sold * 8,844 8,723 11,465 11,326 16,016 23,537 Gross Margin 26.5 24.7 21.3 22.0 19.3 14.8 Operating Income 1,300 1,182 1,372 1,387 1,515 1,670 Operating Margin 10.8 10.2 9.4 9.5 7.6 6.0 Interest Expense 267.0 307.3 322.0 324.5 330.0 425.0 Pretax Income 1005 879 1158 1108 1238 1268 Tax Rate 36.4 34.9 40.6 32.1 35.2 38.1 Net Income before Extraordinary Items 684 596 663 796 840 785 Net Income Growth 14.7 (10.1) (16.7) (5.2) 7.0 15.0 Net Margin 5.7 5.1 4.6 5.5 4.2 2.8 EPS excl Extraordinary Items 11112 EPS Growth (38.0) (2.1) 7.4 (12.9) 15.7 Shares Outstanding 489.8 510.9 518.1 521.2 536.8 537.0 Dividends per Share 11111 Payout Ratio 92.3 76.8 72.6 74.3 61.5 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 5/07 5/06 5/05 5/04 5/03 5/02 Current Assets 5,006 4,790 4,524 5,145 6,060 6,434 Total Assets 11,836 11,970 12,792 14,230 15,071 15,496 Current Liabilities 2,681 2,965 2,389 3,002 3,803 4,313 Long-Term Debt 3,420 3,155 4,349 5,281 5,395 5,919 Total Debt 3,460 3,586 4,475 5,694 5,931 6,159 Current Ratio 1.87 1.62 1.89 1.71 1.59 1.49 Quick Ratio 0.99 0.90 0.80 0.84 0.73 0.49 EBIT / Interest 4.8 3.9 4.6 4.4 4.8 4.0 Total Assets/Equity 2.6 2.6 2.6 2.9 3.1 3.6 L-T Debt % Total Capitalization 42.7 40.4 47.2 52.2 52.9 57.9 Inventory Turnover 3.9 3.7 4.4 3.8 4.2 5.0 Accounts Receivable Turnover 10.1 9.4 10.9 12.3 16.7 18.4 Total Asset Turnover 1.0 0.9 1.1 1.0 1.3 1.7 Return on Assets 5.7 4.8 4.9 5.4 5.5 4.9 Return on Equity 14.8 12.5 13.7 16.5 18.5 17.8
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales ConAgra Foods Inc. (CAG-US) 25.25 12,368 18.7 2.7 12.4 1.0 Nestlé S.A. (NESN-CH) 414.54 159,070 21.1 3.8 11.8 1.9 Kraft Foods Inc. (KFT-US) 32.10 50,612 18.9 1.8 12.0 1.4 Unilever (Private)
ConAgra Foods Inc. (CAG-US) Conagra Foods, Inc.. The Group's principal activities are to manufacture and market processed and packaged foods. It operates in four segments. The Consumer Foods segment includes branded, private label and customized food products which are sold in various retail and foodservice channels. The products include a variety of categories across frozen, refrigerated and shelf-stable temperature classes. The Food and Ingredients segment includes commercially branded foods and ingredients, which are sold principally to foodservice, food manufacturing and industrial customers. The Trading and Merchandising segment includes the sourcing, merchandising, trading, marketing and distribution of agricultural and energy commodities. The International Foods segment includes branded food products which are sold principally in retail channels in North America, Europe and Asia. The primary products include specialty potato products, milled grain ingredients, dehydrated vegetables and seasoning. On July 23, 2007, the company announced that it has acquired New York-based Alexia Foods Inc., a privately held natural food company.
Aug 28 2007 MIRAE ASSET RESEARCH 39 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
CJ Corp. (001040-KR) Current 52 Wk YTD Market 52 Wk Headqrters Korea (South) Price (000) Range (000) PChg Val (M) Beta Web Site http://www.cj.co.kr 121.500 142 - 91 8.5 3,688,254 0.69 Industry Food: Major Diversified (2405) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 6.0 % Insider Hldgs 42.7 % 25.9 1.9 6.9 0.6 1.2
EPS Estimates Relative Strength vs. Korea FY 1FY 2FY 3 12/07 12/08 12/09 150 Mean 3,845.34 4,797.54 5,503.80 140 High 6,287.72 5,971.97 7,298.56 130 Low 2,241.36 3,161.56 3,884.28 120 Exp EPS Chg -19.4 24.8 14.7 1 Mo Revision -6.1 2.3 1.4 110 3 Mo Revision -12.5 -3.9 26.6 100
FY 1FY 2FY 3 90 Forward P/E 31.6 25.3 22.1 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Billions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 6,261 5,377 5,587 4,705 5,456 4,509 Revenue Growth 16.4 (3.7) 18.7 (13.8) 21.0 40.2 Cost of Goods Sold * 4,036 3,497 3,707 3,444 4,304 3,245 Gross Margin 35.5 35.0 33.6 26.8 21.1 28.0 Operating Income 341 417 383 389 346 315 Operating Margin 5.4 7.8 6.8 8.3 6.3 7.0 Interest Expense 132.7 84.8 90.7 53.4 85.6 126.9 Pretax Income 238 333 317 328 265 166 Tax Rate 51.6 32.7 50.5 39.4 39.4 34.6 Net Income before Extraordinary Items 138 129 147 166 121 109 Net Income Growth 6.8 (12.3) (11.5) 37.1 11.3 84.3 Net Margin 2.2 2.4 2.6 3.5 2.2 2.4 EPS excl Extraordinary Items 4,697 4,473 5,229 7,128 5,419 4,780 EPS Growth 5.0 (14.5) (26.6) 31.5 13.4 92.5 Shares Outstanding 0.0 0.0 0.0 0.0 0.0 0.0 Dividends per Share 1,500 1,500 1,650 1,750 1,250 750 Payout Ratio 31.9 33.5 31.6 24.5 23.1 15.7 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Billions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 2,725 2,408 1,649 1,542 1,369 1,540 Total Assets 7,174 5,976 5,138 4,385 4,308 4,448 Current Liabilities 3,278 2,311 2,123 1,666 1,826 2,289 Long-Term Debt 1,347 1,056 517 577 527 489 Total Debt 3,111 2,097 1,580 1,480 1,539 2,084 Current Ratio 0.83 1.04 0.78 0.93 0.75 0.67 Quick Ratio 0.66 0.80 0.55 0.63 0.50 0.49 EBIT / Interest 2.8 4.9 4.5 7.1 4.1 2.3 Total Assets/Equity 4.5 3.9 3.1 3.2 3.4 3.8 L-T Debt % Total Capitalization 46.0 40.8 23.6 29.4 29.5 29.4 Inventory Turnover 7.2 6.8 7.7 7.3 9.9 8.7 Accounts Receivable Turnover 8.5 9.3 11.9 11.9 17.0 15.0 Total Asset Turnover 1.0 1.0 1.2 1.1 1.2 1.0 Return on Assets 2.1 2.3 3.1 3.8 2.8 2.5 Return on Equity 8.8 8.0 9.6 12.6 10.0 9.2
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales CJ Corp. (001040-KR) 121500.00 3,688,254 25.9 1.9 6.9 0.6 Nestlé S.A. (NESN-CH) 390,355.60 149,788,060 21.1 3.8 11.8 1.9 Kraft Foods Inc. (KFT-US) 30,226.97 47,659,200 18.9 1.8 12.0 1.4 Hitachi, Ltd. (6501) 6,210.99 20,652,550 1.0 3.5 0.2
CJ Corp. (001040-KR) CJ Corporation(CJ). The company engages in entertainment media, home shopping & logistics, traditional food & food service, and pharmaceutical businesses in Korea. The group operates in four divisions: Foods & Bio, Logistics, eCEM, and the Synergy Group. In the Food and Bio division, the food operations comprise flour milling, and manufacture of cooking oil, frozen foods and other processed foods, such as Lunch Pop Spaghetti and fresh noodles and Dashida (a seasoning) and Hetbahn (steamed rice). The group’s flour products are marketed under the brand name of Baeksul. Its biotechnology and pharmaceutical products include lysine for animal feed, nucleotide and monosodium glutamate, finished medicines, bulk pharmaceuticals, and amino acids. Its home and personal care products comprise ‘Beat’, a detergent, and ‘Dr. Sedoc’, toothpaste. The group also operated a chain of bakery, (Tous Les Jours) and operated 280 franchise shops, as of December 31, 2001. The logistics division provides logistics and door-to-door delivery services. The eCEM division’s activities comprise cyber trading, movie production and distribution, Internet service provision, and digital content distribution; and the operation of CGV, the movie multiplex chain; home shopping cable channel, m.net the music cable channel, and channel F, the cooking channel. The Synergy Group operations company to improve corporate governance, the latest step by South Korean family-run conglomerates to raise their management transparency.
Aug 28 2007 MIRAE ASSET RESEARCH 40 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Coca-Cola Amatil Ltd. (CCL-AU) CCL-AU 6123451 ASX National Common stock Current 52 Wk YTD Market 52 Wk Headqrters Sydney New South Wales Australia +61 2 132 653 Price Range PChg Val (M) Beta Web Site http://www.ccamatil.com 9.500 10 - 6 22.4 7,161 0.35 Industry Beverages: Non-Alcoholic (2420) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 33.6 % Insider Hldgs 32.2 % 25.2 5.0 9.9 1.6 3.5 Interim 2007 Earnings Release 09-Aug-2007 12:00AM (EST) EPS Estimates Relati ve Strength vs. Australia FY 1FY 2FY 3 105 12/07 12/08 12/09 100 Mean 0.49 0.55 0.60 95 High 0.49 0.58 0.65 90 Low 0.48 0.51 0.54 85 Exp EPS Chg 12.8 12.1 9.7 80 1 Mo Revision 5.0 3.4 3.8 75 3 Mo Revision 6.8 8.3 9.5 70 FY 1FY 2FY 3 65 Forward P/E 19.5 17.4 15.9 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 4,322 3,988 3,450 3,357 3,433 3,675 Revenue Growth 8.4 15.6 2.8 (2.2) (6.6) (12.5) Cost of Goods Sold * 2,468 2,308 1,866 1,936 2,023 2,181 Gross Margin 42.9 42.1 45.9 42.3 41.1 40.6 Operating Income 500 402 377 332 308 320 Operating Margin 11.6 10.1 10.9 9.9 9.0 8.7 Interest Expense 163.8 151.1 128.7 134.0 182.5 170.0 Pretax Income 396 430 407 354 292 524 Tax Rate 28.7 25.5 31.0 45.1 28.4 14.3 Net Income before Extraordinary Items 282 321 280 194 210 448 Net Income Growth (11.9) 14.3 44.3 (7.3) (53.2) 119.5 Net Margin 6.5 8.0 8.1 5.8 6.1 12.2 EPS excl Extraordinary Items 000001 EPS Growth (12.9) 8.8 42.7 (8.2) (45.9) 185.3 Shares Outstanding 750.9 747.7 707.7 699.5 692.4 684.3 Dividends per Share 000000 Payout Ratio 86.2 72.7 70.4 82.4 60.9 24.9 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 1,853 1,707 1,270 1,244 1,355 1,428 Total Assets 5,395 5,246 5,866 5,745 5,910 6,325 Current Liabilities 1,354 1,553 1,262 1,264 1,226 1,707 Long-Term Debt 2,148 1,749 1,366 1,435 1,335 1,443 Total Debt 2,515 2,301 1,817 1,840 1,795 2,515 Current Ratio 1.37 1.10 1.01 0.98 1.11 0.84 Quick Ratio 0.92 0.71 0.68 0.68 0.70 0.58 EBIT / Interest 3.4 3.8 4.2 3.6 2.6 4.1 Total Assets/Equity 3.7 3.7 1.9 2.0 1.8 2.1 L-T Debt % Total Capitalization 59.4 55.1 30.6 33.0 29.4 32.4 Inventory Turnover 4.1 4.6 4.7 4.4 4.3 4.2 Accounts Receivable Turnover 6.5 6.8 6.6 6.0 5.5 6.3 Total Asset Turnover 0.8 0.7 0.6 0.6 0.6 0.5 Return on Assets 5.3 5.8 4.8 3.3 3.4 6.0 Return on Equity 19.5 14.2 9.3 6.4 6.7 12.0
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Coca-Cola Amatil Ltd. (CCL-AU) 9.50 7,161 25.2 5.0 9.9 1.6 Nestlé S.A. (NESN-CH) 506.62 194,402 21.1 3.8 11.8 1.9 PepsiCo, Inc. (PEP-US) 82.99 134,101 19.2 7.0 16.4 3.0 Cadbury Schweppes plc (CBRY-GB) 13.85 29,131 41.9 3.1 13.2 1.9
Coca-Cola Amatil Ltd. (CCL-AU) Coca-Cola Amatil Limited. The Group's principal activities are venturing in two business segments Beverage and Food. The Beverage segment is manufacturing, distributing and marketing carbonated soft drinks, still and mineral waters, fruit juices and other alcohol-free beverages; including the Grinders Coffee business, Grinders roasts, grinds, packs and sells coffee and provides coffee equipment and related services. The Food segment is processing and marketing fruits, vegetables and other food products. It operates in Australia, New Zealand, Papua New Guinea, Fiji, South Korea and Indonesia. The company was founded in 1904 as British Tobacco Company (Australia) Limited and changed its name to Amatil Limited in 1977. Further, the company changed its name to Coca-Cola Amatil Limited in 1989. In 2006, it made a joint venture known as Pacific Beverages Pty Ltd. with SABMiller plc to sell and distribute imported premium beer in Australia. The company also entered into an exclusive agreement through its joint venture company to sell and distribute the premium spirits portfolio of global premium spirits distributor Maxxium, which includes brands such as ABSOLUT VODKA, Jim Beam and Remy Martin. In July 2007, Coca-Cola Co.reportedly agreed to take part in LG Household & Health Care's acquisition of the South Korean bottling arm of Coca-Cola Amatil Ltd.
Aug 28 2007 MIRAE ASSET RESEARCH 41 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
China Mengniu Dairy Co. Ltd. (2319-HK) 2319-HK B01B1L9 Hong Kong Common stock Current 52 Wk YTD Market 52 Wk Headqrters Hong Kong Price Range PChg Val (M) Beta Web Site http://www.mengniuir.com 26.850 30 - 10 31.3 38,285 0.92 Industry Food: Meat/Fish/Dairy (2415) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 41.6 % Insider Hldgs 25.2 % 52.0 12.3 20.2 2.3 0.4 Interim 2007 Earnings Release (P 06-Sep-2007 12:00AM (EST) EPS Estimates Relati ve Strength vs. Hong Kong FY 1FY 2FY 3 12/07 12/08 12/09 300 Mean 0.70 0.90 1.18 High 0.81 1.01 1.34 250 Low 0.59 0.69 0.85 200 Exp EPS Chg 31.5 29.1 30.5 1 Mo Revision 2.2 4.5 6.6 150 3 Mo Revision 4.3 4.3 5.0 FY 1FY 2FY 3 100 Forward P/E 38.5 29.8 22.8 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 12/06 12/05 12/04 12/03 Net Sales 15,861 10,289 6,787 3,830 Revenue Growth 54.2 51.6 77.2 Cost of Goods Sold * 12,228 7,995 5,276 2,865 Gross Margin 22.9 22.3 22.3 25.2 Operating Income 883 599 401 281 Operating Margin 5.6 5.8 5.9 7.3 Interest Expense 61.6 41.8 37.1 14.2 Pretax Income 912 590 386 276 Tax Rate 8.1 9.9 4.5 20.9 Net Income before Extraordinary Items 710 434 301 155 Net Income Growth 63.5 44.5 94.4 Net Margin 4.5 4.2 4.4 4.0 EPS excl Extraordinary Items 1000 EPS Growth 49.7 3.3 117.3 Shares Outstanding 1,368.4 1,368.4 1,110.5 1,000.0 Dividends per Share 0000 Payout Ratio 21.3 19.2 16.4 0.0 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 2,931 2,405 1,942 924 Total Assets 7,736 5,849 4,470 2,216 Current Liabilities 3,180 2,445 1,888 1,015 Long-Term Debt 639 439 242 229 Total Debt 903 813 705 406 Current Ratio 0.92 0.98 1.03 0.91 Quick Ratio 0.59 0.68 0.67 0.53 EBIT / Interest 15.8 15.1 11.4 20.3 Total Assets/Equity 2.6 2.6 2.4 3.4 L-T Debt % Total Capitalization 17.6 16.4 11.6 26.1 Inventory Turnover 13.5 11.3 10.0 Accounts Receivable Turnover 53.5 45.5 46.6 Total Asset Turnover 2.3 2.0 2.0 Return on Assets 10.5 8.4 9.0 Return on Equity 27.2 21.3 24.2
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales China Mengniu Dairy Co. Ltd. (2319-HK) 26.85 38,285 52.0 12.3 20.2 2.3 Inner Mongolia Yili Industrial Group Company Limited (6008 34.94 18,045 49.6 6.3 22.9 1.0 Shanghai Bright Dairy & Food Co., Ltd. (600597-CN) 13.40 13,965 84.5 6.0 29.0 1.8
China Mengniu Dairy Co. Ltd. (2319-HK) China Mengniu Dairy Company Limited. The Group's principal activities are the manufacturing and distribution of processed UHT milk, milk related drinks and yogurt products. Other activities include manufacturing and distribution of ice cream and other dairy products and investment holding. Its products are distributed in China, Hong Kong and Macau. The company operates in three segments: the liquid milk products segment, which manufactures and distributes processed UHT milk, milk beverages and yogurt; the ice cream products segment, which manufactures and distributes ice cream products, and the other dairy products segment, which manufactures and distributes processed milk powder and milk tablets products. At the end of 2006, it formed a joint venture with Danone Group to manufacture, develop, distribute and sell yogurt products.
Aug 28 2007 MIRAE ASSET RESEARCH 42 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Foster's Group Ltd. (FGL-AU) FGL-AU 6349268 ASX National Common stock Current 52 Wk YTD Market 52 Wk Headqrters Southbank Victoria Australia +61 3 9633 2000 Price Range PChg Val (M) Beta Web Site http://www.fosters.com.au 5.960 7 - 5 -13.9 12,155 0.89 Industry Beverages: Alcoholic (2425) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 40.7 % Insider Hldgs 0.4 % 9.7 2.5 12.9 2.6 3.8 FY 2007 Earnings Call 27-Aug-2007 9:00PM EPS Estimates Relative Strength vs. Australia FY 1FY 2FY 3 105 6/07 6/08 6/09 100 Mean 0.35 0.38 0.43 High 0.36 0.40 0.45 95 Low 0.33 0.36 0.41 90
Exp EPS Chg 11.9 10.7 10.9 85 1 Mo Revision 0.0 -1.5 -1.4 80 3 Mo Revision -1.1 -2.8 -4.1 FY 1FY 2FY 3 75 Forward P/E 17.2 15.5 14.0 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 6/06 6/05 6/04 6/03 6/02 6/01 Net Sales 4,908 3,972 3,908 4,732 4,572 4,177 Revenue Growth 23.6 1.6 (17.4) 3.5 9.5 31.7 Cost of Goods Sold * 2,757 1,991 1,985 2,387 2,269 2,113 Gross Margin 43.8 49.9 49.2 49.6 50.4 49.4 Operating Income 227 388 114 598 532 561 Operating Margin 4.6 9.8 2.9 12.6 11.6 13.4 Interest Expense 274.3 207.1 237.6 299.3 322.5 269.3 Pretax Income 1393 1152 855 667 809 620 Tax Rate 16.8 18.8 5.6 29.5 29.9 31.4 Net Income before Extraordinary Items 1164 936 799 463 561 465 Net Income Growth 24.4 17.1 72.7 (17.5) 20.6 8.7 Net Margin 23.7 23.6 20.5 9.8 12.3 11.1 EPS excl Extraordinary Items 100000 EPS Growth 23.7 21.2 73.1 (18.6) 10.5 0.0 Shares Outstanding 2,019.8 2,002.9 2,009.8 2,073.6 2,057.3 1,994.8 Dividends per Share 000000 Payout Ratio 37.1 42.7 49.9 84.1 62.0 62.5 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 6/06 6/05 6/04 6/03 6/02 6/01 Current Assets 2,861 3,336 2,512 3,001 2,641 2,231 Total Assets 10,013 11,380 8,056 9,341 9,202 8,876 Current Liabilities 1,573 1,866 2,060 2,271 1,697 1,426 Long-Term Debt 3,468 4,432 1,260 2,234 3,148 3,716 Total Debt 3,941 5,029 2,372 3,005 3,385 4,081 Current Ratio 1.82 1.79 1.22 1.32 1.56 1.56 Quick Ratio 1.01 0.99 0.71 0.81 0.90 0.81 EBIT / Interest 6.1 6.6 4.6 3.2 3.5 3.3 Total Assets/Equity 2.2 2.3 1.8 2.1 2.3 2.4 L-T Debt % Total Capitalization 43.8 47.5 21.7 33.5 43.6 50.3 Inventory Turnover 2.0 1.6 1.8 2.1 2.1 2.7 Accounts Receivable Turnover 5.0 4.7 3.7 3.6 5.2 9.2 Total Asset Turnover 0.5 0.4 0.4 0.5 0.5 0.6 Return on Assets 10.9 9.6 9.2 5.0 6.2 6.7 Return on Equity 24.9 19.8 17.8 10.9 14.5 15.7
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Foster's Group Ltd. (FGL-AU) 5.96 12,155 9.7 2.5 12.9 2.6 Anheuser-Busch Companies, Inc. (BUD-US) 58.66 43,971 18.3 9.2 14.3 2.2 Constellation Brands, Inc. (STZ-US) 29.70 6,402 22.3 1.7 11.0 1.1 E. & J. Gallo Winery (Private)
Foster's Group Ltd. (FGL-AU) Foster's Group Limited. Foster's Group is a premium global multi-beverage company delivering a total portfolio of beer, wine, spirits, cider and non-alcohol beverages. The Group's principal activities are producing and marketing alcoholic beverages. Major brands include Foster's Lager, Victoria Bitter, Crown Lager, Beringer, Lindemans, Wolf Blass, Penfolds, Rosemount, Matua Valley, Wynns Coonawarrra Estate and Castello di Gabbiano,The Black Douglas scotch, SKYY vodka and Cougar Bourbon. Foster's Group acquired the Australian wine-making group Southcorp in 2005 and added famous brands such as Penfolds, Lindemans and Rosemount to the Foster's revenues. In June 2007, Foster's Group Ltd. and Miller Brewing Company struck a licensing deal for Miller to produce Foster's Lager in the US, starting in November.
Aug 28 2007 MIRAE ASSET RESEARCH 43 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
General Mills Inc. (GIS-US) GIS-US 370334104 2367026 NYSE Common stock Current 52 Wk YTD Market 52 Wk Headqrters Minneapolis Minnesota USA +1 763 764-7600 Price Range PChg Val (M) Beta Web Site http://www.generalmills.com 56.800 62 - 52 -1.4 18,755 0.68 Industry Food: Major Diversified (2405) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 78.4 % Insider Hldgs 0.5 % 17.9 3.6 11.4 1.6 2.7 Q1 2008 Earnings Release (Proje 20-Sep-2007 12:00AM (EST) Ratios Relati ve Strength vs. S&P 500 Stock Index Latest 3 Yr Avg 5 Yr Avg 108 Gross Margin 36.1 38.5 39.6 106 EBITD Margin 20.2 20.9 21.5 104 Net Margin 9.2 9.9 9.6 102 R&D%Sales 1.5 1.5 1.5 ROA 6.3 6.4 6.0 100 ROE 20.6 20.8 21.7 98 Debt%Equity 116.7 110.2 139.9 96 Payout Ratio 41.4 42.0 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 5/07 5/06 5/05 5/04 5/03 5/02 Net Sales 12,442 11,640 11,244 11,070 10,506 7,949 Revenue Growth 6.9 3.5 1.6 5.4 32.2 12.3 Cost of Goods Sold * 7,955 6,966 6,816 6,584 6,109 4,767 Gross Margin 36.1 40.2 39.4 40.5 41.9 40.0 Operating Income 2,097 1,996 2,010 2,079 1,995 1,273 Operating Margin 16.9 17.1 17.9 18.8 19.0 16.0 Interest Expense 394.0 366.0 446.0 529.0 581.0 442.0 Pretax Income 1695 1627 1854 1509 1316 667 Tax Rate 33.0 33.3 35.8 35.0 35.0 35.8 Net Income before Extraordinary Items 1144 1090 1240 1055 917 461 Net Income Growth 5.0 (12.1) 17.5 15.0 98.9 (30.7) Net Margin 9.2 9.4 11.0 9.5 8.7 5.8 EPS excl Extraordinary Items 33332 EPS Growth (6.6) 22.9 3.4 61.7 (18.2) Shares Outstanding 340.0 356.0 369.0 379.0 370.0 367.0 Dividends per Share 11111 Payout Ratio 44.4 38.4 43.2 42.0 67.9 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 5/07 5/06 5/05 5/04 5/03 5/02 Current Assets 3,054 3,176 3,055 3,215 3,179 3,437 Total Assets 18,184 18,207 18,066 18,448 18,227 16,540 Current Liabilities 5,845 6,138 4,184 2,757 3,444 5,747 Long-Term Debt 3,218 2,415 4,255 7,410 7,516 5,591 Total Debt 6,206 6,049 6,192 8,226 8,857 9,439 Current Ratio 0.52 0.52 0.73 1.17 0.92 0.60 Quick Ratio 0.32 0.35 0.48 0.78 0.61 0.41 EBIT / Interest 5.3 5.4 5.2 3.9 3.3 2.5 Total Assets/Equity 3.4 3.2 3.2 3.5 4.4 4.6 L-T Debt % Total Capitalization 37.7 29.5 42.8 58.5 64.3 61.0 Inventory Turnover 7.1 6.7 6.5 6.1 5.7 6.1 Accounts Receivable Turnover 12.3 11.0 11.0 11.1 10.6 9.5 Total Asset Turnover 0.7 0.6 0.6 0.6 0.6 0.7 Return on Assets 6.3 6.0 6.8 5.8 5.3 4.3 Return on Equity 20.6 19.0 22.7 22.4 23.7 25.4
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales General Mills Inc. (GIS-US) 56.80 18,755 17.9 3.6 11.4 1.6 Kraft Foods Inc. (KFT-US) 32.10 50,612 18.9 1.8 12.0 1.4 Groupe Danone (BN-FR) 74.12 35,637 19.6 4.5 9.2 2.0 Kellogg Company (K-US) 54.17 21,437 20.1 8.9 14.8 1.9
General Mills Inc. (GIS-US) General Mills, Inc.. The Group's principal activity is to produce and market packaged consumer food products. The food products include cereals, desserts, flour and baking mixes, dinner and side dish products and organic products. It operates in three segments. U.S. Retail segment markets retail products primarily through its own sales organization, supported by advertising and other promotional activities. Bakeries and Foodservice segment markets mixes and unbaked, par-baked and fully baked frozen dough products to retail, supermarket and wholesale bakeries. International businesses segment consist of operations and sales in Canada, Latin America, Europe and the Asia/Pacific region. It also markets its products to foodservice operators, convenience stores and vending operators. The Group's brand names include Cheerois, Wheaties, Lucky Charms, Chex and Pillsbury. Among the Häagen-Dazs joint ventures in Asia, the largest is with Suntory and Takanashi Dairy in Japan. The company formed the Cereal Partners Worldwide (CPW) joint venture with Nestlé to focus on the global breakfast cereal category outside North America. In late 2004, the company transitioned its entire breakfast cereal line to whole grain due to scientific research showing the positive impact consuming whole grains has on individuals' health.
Aug 28 2007 MIRAE ASSET RESEARCH 44 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Groupe Danone (BN-FR) BN-FR B1Y9TB3 Euronext France Common stock Current 52 Wk YTD Market 52 Wk Headqrters 75009 Paris France +33 1 44 35 20 20 Price Range PChg Val (M) Beta Web Site http://www.danone.com 54.600 64 - 51 -4.9 26,253 0.87 Industry Food: Major Diversified (2405) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 42.9 % Insider Hldgs 17.0 % 19.6 4.5 9.2 2.0 1.8 Q3 2007 Sales and Revenue Rele 17-Oct-2007 12:00AM (EST) EPS Estimates Relative Strength vs. France FY 1FY 2FY 3 114 12/07 12/08 12/09 112 110 Mean 2.71 3.02 3.46 108 High 2.95 3.27 3.82 106 Low 2.32 2.72 3.16 104 102 Exp EPS Chg 4.6 11.4 14.7 100 1 Mo Revision -2.2 -3.6 -2.2 98 3 Mo Revision -2.6 -3.6 -1.4 96 94 FY 1FY 2FY 3 92 Forward P/E 20.2 18.1 15.8 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 14,073 13,024 13,700 13,131 13,555 14,470 Revenue Growth 8.1 (4.9) 4.3 (3.1) (6.3) 1.3 Cost of Goods Sold * 7,214 6,644 6,439 6,105 6,586 7,345 Gross Margin 48.7 49.0 53.0 53.5 51.4 49.2 Operating Income 1,941 1,772 1,705 1,604 1,590 1,609 Operating Margin 13.8 13.6 12.4 12.2 11.7 11.1 Interest Expense 219.0 189.0 86.0 208.0 247.0 323.0 Pretax Income 1806 1596 1527 1474 1938 672 Tax Rate 19.9 29.6 29.9 33.1 25.3 61.9 Net Income before Extraordinary Items 1199 960 317 839 1283 132 Net Income Growth 24.9 202.8 (62.2) (34.6) 872.0 (81.7) Net Margin 8.5 7.4 2.3 6.4 9.5 0.9 EPS excl Extraordinary Items 331220 EPS Growth (6.4) 372.2 (61.8) (32.3) 924.2 (81.5) Shares Outstanding 480.8 489.0 501.5 506.3 517.2 544.5 Dividends per Share 111111 Payout Ratio 35.9 28.6 107.1 37.2 23.6 216.8 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 6,154 6,118 4,627 4,323 5,899 4,122 Total Assets 16,513 16,475 13,201 14,305 15,490 17,095 Current Liabilities 4,248 4,560 3,613 3,986 4,818 4,067 Long-Term Debt 5,705 5,692 3,614 4,171 4,092 5,425 Total Debt 6,121 6,561 4,051 5,036 5,638 5,936 Current Ratio 1.45 1.34 1.28 1.08 1.22 1.01 Quick Ratio 1.30 1.20 1.11 0.94 1.10 0.83 EBIT / Interest 9.2 9.4 18.8 8.1 8.8 3.1 Total Assets/Equity 2.8 3.1 2.9 3.0 3.0 2.9 L-T Debt % Total Capitalization 49.5 51.9 44.1 46.4 44.6 47.7 Inventory Turnover 11.5 10.8 11.0 10.5 9.7 9.8 Accounts Receivable Turnover 6.5 7.7 10.5 8.2 7.0 6.0 Total Asset Turnover 0.9 0.9 1.0 0.9 0.8 0.8 Return on Assets 7.3 6.5 2.3 5.6 7.9 0.8 Return on Equity 21.6 19.5 6.7 16.9 23.3 2.0
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Groupe Danone (BN-FR) 54.60 26,253 19.6 4.5 9.2 2.0 Nestlé S.A. (NESN-CH) 305.38 117,183 21.1 3.8 11.8 1.9 The Coca-Cola Company (KO-US) 39.77 92,001 24.0 6.6 19.0 4.8 Kraft Foods Inc. (KFT-US) 23.65 37,285 18.9 1.8 12.0 1.4
Groupe Danone (BN-FR) Danone. The Group's principal activity is to produce and sell alimentary products. The Group operates under three major segments, Dairy products, Beverages and Biscuits,. Under Dairy products, the Group offers yoghurt, low fat and bio products. Under Beverages, the Group offers drinking water and beer. Under Biscuits, the Group offers cereal biscuits, sweet calorie biscuits and snacks. The Group also offers other food products such as sauce and pastes. The Group operates mainly in Europe andAsia.Witha viewto achieving leadership in the global sectors, in 1997, Group DANONE decided to restructure, setting up four new divisions - Fresh Dairy Products, Biscuits and Cereal Products, Beverages, and Asia-Pacific. About 55% of its 2005 net sales derive from Dairy, 27% from beverages, and 18% from biscuits and cereals. Concurrently, three international brands were brought to the forefront: Danone, Evian and LU. Recent years have seen some 40 acquisitions in Asia, Latin America, Central Europe, in Africa and in the Middle East. Danone owns many water brands world-wide. In Asia, it has acquired Yili, Aqua (Indonesia), and Robust (92%), and has a 51% holding in China's Wahaha Group, giving it a total market share of 20%, making it the leading vendor of packaged water in Asia. In September 2006, Danone acquired the Ukrainian fresh dairy company Rodich and acquired 49% of the
Aug 28 2007 MIRAE ASSET RESEARCH 45 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Goodman Fielder Ltd. (GFF-AU) GFF-AU B0T0H76 ASX National Common stock Current 52 Wk YTD Market 52 Wk Headqrters Australia Price Range PChg Val (M) Beta Web Site http://www.goodmanfielder.com.au 2.480 3 - 2 11.7 3,286 0.83 Industry Food: Major Diversified (2405) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 54.7 % Insider Hldgs 20.0 % 14.0 1.8 14.2 2.2 5.7 Q4 2007 Earnings Release 28-Aug-2007 12:00AM EPS Estimates FY 1FY 2FY 3 6/07 6/08 6/09 Mean 0.17 0.18 0.19 High 0.18 0.19 0.22 N/A Low 0.16 0.16 0.17 Exp EPS Chg 6.6 9.0 1 Mo Revision 3 Mo Revision FY 1FY 2FY 3 Forward P/E 14.9 14.0 12.8
Income Statement Summary (Millions) 6/06 6/05 Net Sales 1,522.6 2,308.1 Revenue Growth (34.0) Cost of Goods Sold * 954.6 1,412.2 Gross Margin 37.3 38.8 Operating Income 236.6 322.2 Operating Margin 15.5 14.0 Interest Expense 38.7 0.0 Pretax Income 205.6 319.2 Tax Rate 27.8 0.0 Net Income before Extraordinary Items 146.8 319.2 Net Income Growth (54.0) Net Margin 9.6 13.8 EPS excl Extraordinary Items 0.18 0.24 EPS Growth (26.5) Shares Outstanding 1,325.0 1,325.0 Dividends per Share 0.06 Payout Ratio 31.1 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 6/06 6/05 6/04 6/03 6/02 6/01 Current Assets 518.2 378.9 Total Assets 3,015.0 3,086.6 Current Liabilities 361.5 344.2 Long-Term Debt 931.0 1,055.3 Total Debt 932.0 1,106.3 Current Ratio 1.43 1.10 Quick Ratio 1.05 0.70 EBIT / Interest 6.3 Total Assets/Equity 1.7 1.9 L-T Debt % Total Capitalization 35.0 39.1 Inventory Turnover 6.9 Accounts Receivable Turnover 6.1 Total Asset Turnover 0.5 Return on Assets 4.8 Return on Equity 8.7
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Goodman Fielder Ltd. (GFF-AU) 2.48 3,286 14.0 1.8 14.2 2.2
Goodman Fielder Ltd. (GFF-AU) Goodman Fielder Ltd. The Group's principal activities are manufacturing and supplying consumer food products including baking, spreads and oils, edible fats and dairy goods. The company markets its products to supermarkets, convenience stores, food manufacturers, wholesalers, and commercial customers. It offers its products under various brands, including Meadow Lea, Praise, White Wings, Pampas, Mighty Soft, Helga's, Wonder White, Meadow Fresh, and Irvines, as well as Vogel's brand. After acquisition of Country Life Bakery in 2006, the company acquired River Mill Bakeries and Canterbiry Flour Milles in March 2007. The company primarily operates in Australia, New Zealand, and the Pacific Islands.
Aug 28 2007 MIRAE ASSET RESEARCH 46 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Nestle S.A. (NESN-CH) NESN-CH 7123870 Swiss Virt-X Common stock Current 52 Wk YTD Market 52 Wk Headqrters 1800 Vevey Switzerland +41 21 924 2111 Price Range PChg Val (M) Beta Web Site http://www.nestle.com 500.500 506 - 414 15.6 192,053 0.74 Industry Food: Major Diversified (2405) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 27.7 % Insider Hldgs 4.4 % 21.1 3.8 11.8 1.9 2.1 Q3 2007 Earnings Release 18-Oct-2007 12:00AM (EST) EPS Estimates Relati ve Strength vs. Swi tzerl and FY 1FY 2FY 3 108 12/07 12/08 12/09 106 104 Mean 26.80 29.98 33.50 102 High 28.97 33.00 36.01 100 Low 24.50 27.40 30.60 98 Exp EPS Chg 13.0 11.9 11.7 96 94 1 Mo Revision 1.5 2.7 4.3 92 3 Mo Revision 1.9 3.2 5.6 90 FY 1FY 2FY 3 88 Forward P/E 18.7 16.7 14.9 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 98,458 91,075 86,769 87,979 89,160 84,698 Revenue Growth 8.1 5.0 (1.4) (1.3) 5.3 4.0 Cost of Goods Sold * 40,713 37,946 37,745 39,154 39,959 38,250 Gross Margin 58.6 58.3 56.5 55.5 55.2 54.8 Operating Income 12,811 11,369 8,687 8,871 8,630 9,076 Operating Margin 13.0 12.5 10.0 10.1 9.7 10.7 Interest Expense 1,218 1,180 1,090 1,202 1,410 1,297 Pretax Income 11,614 9,875 7,679 8,012 9,368 8,350 Tax Rate 24.1 22.7 27.7 25.1 21.1 24.1 Net Income before Extraordinary Items 9,123 8,002 6,717 6,213 7,564 6,681 Net Income Growth 14.0 19.1 8.1 (17.9) 13.2 15.9 Net Margin 9.3 8.8 7.7 7.1 8.5 7.9 EPS excl Extraordinary Items 23.71 20.56 17.29 16.05 19.51 17.25 EPS Growth 15.3 18.9 7.7 (17.7) 13.1 15.7 Shares Outstanding 383.7 388.2 387.4 387.9 386.9 387.7 Dividends per Share 10.40 9.00 8.00 7.20 7.00 6.40 Payout Ratio 43.9 43.8 46.3 44.9 35.9 37.1 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 35,305 41,765 35,285 36,233 35,342 39,008 Total Assets 99,372 101,700 85,648 88,163 85,833 91,868 Current Liabilities 32,479 35,818 29,117 30,365 33,737 41,492 Long-Term Debt 6,952 8,153 10,731 14,064 10,548 9,946 Total Debt 22,446 26,958 25,453 29,483 29,250 35,432 Current Ratio 1.09 1.17 1.21 1.19 1.05 0.94 Quick Ratio 0.84 0.94 0.97 0.96 0.85 0.75 EBIT / Interest 10.5 9.4 8.0 7.7 7.6 7.4 Total Assets/Equity 1.9 2.0 2.2 2.4 2.5 2.7 L-T Debt % Total Capitalization 12.0 14.1 21.5 27.6 23.3 22.8 Inventory Turnover 5.0 5.0 5.4 5.7 5.5 5.1 Accounts Receivable Turnover 6.8 7.0 7.0 6.9 6.7 6.4 Total Asset Turnover 1.0 1.0 1.0 1.0 1.0 1.1 Return on Assets 9.1 8.5 7.7 7.1 8.5 8.6 Return on Equity 18.1 18.0 17.7 17.3 22.1 21.0
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Nestle S.A. (NESN-CH) 500.50 192,053 21.1 3.8 11.8 1.9 Kraft Foods Inc. (KFT-US) 38.76 61,107 18.9 1.8 12.0 1.4 Groupe Danone (BN-FR) 89.48 43,026 19.6 4.5 9.2 2.0 ConAgra Foods, Inc. (CAG-US) 30.49 14,932 18.7 2.7 12.4 1.0
Nestle S.A. (NESN-CH) Nestle S.A.. The Group's principal activity is the manufacture of the following products: Beverages (instant coffee, ground roasted coffee, ready-to-drink coffee, chocolate and malt flavored beverages and mineral water); Prepared dishes, cooking aids (frozen products, soups, bouillons, sauces and culinary preparations, pasta and sauces, noodles, delicatessen products and cold meat); Milk products, nutrition and ice cream (powdered milk, coffee creamer, infant nutrition, dietetic foods, yoghurt, cereals, desserts and ice- cream); Pet care Products; Chocolate and Confectionery; Pharmaceutical Products (ophthalmic therapeutic drugs, contact lens care solutions, surgical instruments and equipment,intraocular lenses and products used during surgery and dermatology).There were two major acquisitions in North America in 2002: in July, Nestlé announced that the U.S. ice cream business was to be merged into Dreyer's, and in August, a USD 2.6bn acquisition was announced of Chef America, Inc. , a leading U.S.-based hand-held frozen food product business. In 2006, Jenny Craig and Uncle Toby's were acquired, as well as Delta Ice Cream. The following year in April 2007, Nestle bought baby food manufacturer Gerber for $5.5 billion Nestlé completed its acquisition of Novartis Medical Nutrition in July 2007.
Aug 28 2007 MIRAE ASSET RESEARCH 47 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
H.J. Heinz Co. (HNZ-US) HNZ-US 423074103 2419240 NYSE Common stock Current 52 Wk YTD Market 52 Wk Headqrters Pittsburgh Pennsylvania USA +1 412 456-5700 Price Range PChg Val (M) Beta Web Site http://www.heinz.com 45.220 49 - 41 0.5 14,562 0.72 Industry Food: Major Diversified (2405) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 71.7 % Insider Hldgs 0.5 % 19.0 7.9 12.7 1.6 3.4 Q1 2008 Earnings Release 24-Aug-2007 12:00AM Ratios Relati ve Strength vs. S&P 500 Stock Index Latest 3 Yr Avg 5 Yr Avg Gross Margin 37.7 36.9 36.8 110 EBITD Margin 19.0 18.7 18.9 105 Net Margin 8.8 7.4 7.6 R&D%Sales 100 ROA 8.0 6.5 6.7 95 ROE 40.7 30.8 36.2 Debt%Equity 265.1 220.3 266.9 90 Payout Ratio 72.8 65.6 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 4/07 4/06 4/05 4/04 4/03 4/02 Net Sales 9,002 8,643 8,912 8,415 8,237 9,431 Revenue Growth 4.1 (3.0) 5.9 2.2 (12.7) 0.0 Cost of Goods Sold * 5,609 5,459 5,679 5,322 5,251 6,085 Gross Margin 37.7 36.8 36.3 36.7 36.3 35.5 Operating Income 1,447 1,350 1,382 1,374 1,361 1,608 Operating Margin 16.1 15.6 15.5 16.3 16.5 17.1 Interest Expense 333.3 316.3 232.4 211.8 223.5 294.3 Pretax Income 1124 693 1059 1169 869 1279 Tax Rate 29.6 36.2 30.5 33.3 36.1 34.8 Net Income before Extraordinary Items 792 443 736 779 555 834 Net Income Growth 78.8 (39.8) (5.5) 40.3 (33.4) 68.5 Net Margin 8.8 5.1 8.3 9.3 6.7 8.8 EPS excl Extraordinary Items 22222 EPS Growth (17.0) (15.7) 23.2 (14.2) 46.5 Shares Outstanding 321.8 330.8 347.7 352.0 351.4 350.9 Dividends per Share 111112 Payout Ratio 83.3 62.2 49.8 67.1 76.8 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 4/07 4/06 4/05 4/04 4/03 4/02 Current Assets 3,019 2,704 3,646 3,611 3,284 3,374 Total Assets 10,033 9,738 10,578 9,877 9,225 10,278 Current Liabilities 2,505 2,018 2,587 2,469 1,926 2,509 Long-Term Debt 4,414 4,357 4,122 4,538 4,776 4,643 Total Debt 4,882 4,412 4,695 4,974 4,931 5,346 Current Ratio 1.21 1.34 1.41 1.46 1.71 1.34 Quick Ratio 0.73 0.81 0.92 0.99 1.11 0.74 EBIT / Interest 4.4 3.2 5.6 6.5 4.9 5.3 Total Assets/Equity 5.4 4.8 4.1 5.2 7.7 6.0 L-T Debt % Total Capitalization 70.6 68.0 61.3 70.6 79.9 73.0 Inventory Turnover 4.9 4.7 4.7 4.6 3.9 4.1 Accounts Receivable Turnover 9.0 8.3 8.2 7.5 6.3 6.7 Total Asset Turnover 0.9 0.9 0.9 0.9 0.8 1.0 Return on Assets 8.0 4.4 7.2 8.2 5.7 8.6 Return on Equity 40.7 19.0 32.7 50.4 38.1 53.9
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales H.J. Heinz Co. (HNZ-US) 45.22 14,562 19.0 7.9 12.7 1.6 Nestlé S.A. (NESN-CH) 414.54 159,070 21.1 3.8 11.8 1.9 Campbell Soup Company (CPB-US) 37.18 14,405 17.5 8.8 12.6 1.8 ConAgra Foods, Inc. (CAG-US) 25.25 12,368 18.7 2.7 12.4 1.0
H.J. Heinz Co. (HNZ-US) H. J. Heinz Company(HEINZ). The Group's principal activity is to manufacture and market processed food products. The Group's products include ketchup, condiments, sauces, frozen foodsoups, beans, pasta meals, infant foods and other processed foods. The products are marketed by and distributed to grocery stores, pharmacies, mass merchants, club stores, foodservice distributors, hotels, restaurants and government agencies. Its top 15 power brands account for two-thirds of annual sales. The Group also owns or leases office space, warehouses, distribution centers and research and other facilities. Major Trademarks include Heinz, Classico, Farex, Ore-Ida, Boston Market, Smart Ones and Plasmon. The Group has operations in North America, Europe, Asia Pacific and Africa. In 2002, it sold U.S. StarKist seafood, North American pet foods and pet snacks, U.S. private label soup, College Inn broth, and U.S. baby food businesses to Del Monte Foods Company in an all-stock transaction.
Aug 28 2007 MIRAE ASSET RESEARCH 48 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Heineken Holding N.V. (HEIO-NL) HEIO-NL B0CCH46 Euronext Netherlands Common stock Current 52 Wk YTD Market 52 Wk Headqrters 1017 Zd Amsterdam Netherlands +31 20 622 11 52 Price Range PChg Val (M) Beta Web Site http://www.heinekeninternational.com 38.720 42 - 30 25.7 9,471 0.81 Industry Beverages: Alcoholic (2425) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 18.7 % Insider Hldgs 58.8 % 15.7 3.8 3.5 0.8 1.5 Q2 2007 Earnings Release 29-Aug-2007 1:00AM EPS Estimates FY 1FY 2FY 3 Relative Strength vs. Netherlands 125 12/07 12/08 12/09 120 Mean 2.15 2.45 2.61 115 High 2.19 2.56 2.74 110 Low 2.10 2.33 2.48 Exp EPS Chg -13.3 14.0 6.7 105 1 Mo Revision 7.2 4.9 5.2 100 3 Mo Revision 13.5 95 FY 1FY 2FY 3 90 Forward P/E 18.1 15.8 14.8 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 11,829 10,796 10,005 9,255 9,011 7,937 Revenue Growth 9.6 7.9 8.1 2.7 13.5 13.2 Cost of Goods Sold * 6,714 6,237 5,767 5,268 4,682 4,229 Gross Margin 43.2 42.2 42.4 43.1 48.0 46.7 Operating Income 1,478 1,256 1,248 1,229 1,282 1,147 Operating Margin 12.5 11.6 12.5 13.3 14.2 14.5 Interest Expense 185.0 199.0 227.0 180.0 146.0 118.0 Pretax Income 1710 1169 928 1183 1221 1099 Tax Rate 21.3 25.7 33.0 27.0 29.8 29.8 Net Income before Extraordinary Items 606 381 269 399 398 332 Net Income Growth 59.1 41.6 (32.6) 0.3 19.9 6.8 Net Margin 5.1 3.5 2.7 4.3 4.4 4.2 EPS excl Extraordinary Items 221222 EPS Growth 59.4 41.2 (32.6) 0.3 3.6 (1.2) Shares Outstanding 244.6 245.0 245.0 245.0 245.0 245.0 Dividends per Share 100000 Payout Ratio 24.3 25.8 36.4 19.6 19.7 20.4 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 4,237 3,278 2,792 3,630 2,813 3,059 Total Assets 12,602 11,543 10,401 10,880 7,781 7,217 Current Liabilities 4,008 3,752 2,666 2,911 2,649 2,235 Long-Term Debt 2,058 2,195 2,620 2,668 1,215 759 Total Debt 3,299 3,255 3,571 3,521 1,993 1,088 Current Ratio 1.06 0.87 1.05 1.25 1.06 1.37 Quick Ratio 0.83 0.64 0.76 0.96 0.77 1.06 EBIT / Interest 10.2 6.9 5.1 7.6 9.4 10.3 Total Assets/Equity 5.0 5.8 6.2 6.9 6.1 5.2 L-T Debt % Total Capitalization 45.1 52.5 60.8 62.7 48.9 35.5 Inventory Turnover 7.6 7.5 7.2 6.6 6.4 6.8 Accounts Receivable Turnover 6.7 7.6 8.4 7.9 8.4 8.2 Total Asset Turnover 1.0 1.0 0.9 1.0 1.2 1.2 Return on Assets 5.0 3.5 2.5 4.3 5.3 4.9 Return on Equity 27.0 20.7 16.4 27.9 30.0 25.8
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Heineken Holding N.V. (HEIO-NL) 38.72 9,471 15.7 3.8 3.5 0.8
Heineken Holding N.V. (HEIO-NL) Heineken Holding. The Group’s principal activity is to operate as a holding company. owns 115 breweries in 65 countries, offering approximately 170 brands. Heineken sells its products through a network of distributors and breweries in North America, the United Kingdom, Ireland, Europe, and internationally. The Group's subsidiaries are involved in producing and distributing beer. The principal international brands are Heineken and Amstel, but the group brews and sells more than 170 international premium, regional, local and specialty beers, including Cruzcampo, Tiger, Zywiec, Birra Moretti, Ochota, Murphy’s and Star. In June 2007, the company announced the acquisition of Krušovice Brewery in the Czech Republic from Radeberger Gruppe KG. As a result of this transaction, the market share of Heineken in the Czech Republic will increase to 8%, with total volumes of over 1.6 million hectolitres, improving Heineken’s position in the market to number three.
Aug 28 2007 MIRAE ASSET RESEARCH 49 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Hershey Co. (HSY-US) HSY-US 427866108 2422806 NYSE Common stock Current 52 Wk YTD Market 52 Wk Headqrters Hershey Pennsylvania USA +1 717 534-4200 Price Range PChg Val (M) Beta Web Site http://www.hersheys.com 46.600 57 - 44 -6.4 10,628 0.79 Industry Food: Specialty/Candy (2410) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 62.0 % Insider Hldgs 8.1 % 25.3 18.6 13.9 2.1 2.6 Q3 2007 Earnings Release 18-Oct-2007 12:00AM (EST) Ratios Relative Strength vs. S&P 500 Stock Index Latest 3 Yr Avg 5 Yr Avg 100 Gross Margin 37.7 38.8 38.7 95 EBITD Margin 24.4 24.6 24.0 90 Net Margin 11.3 11.6 11.2 85 R&D%Sales 0.6 0.5 0.5 80 ROA 13.2 13.8 13.3 75 ROE 65.6 54.1 45.9 70 Debt%Equity 306.1 199.7 148.0 65
Payout Ratio 44.0 42.4 42.2 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 4,944 4,836 4,429 4,173 4,120 4,557 Revenue Growth 2.2 9.2 6.2 1.3 (9.6) 8.0 Cost of Goods Sold * 3,080 2,943 2,680 2,543 2,555 2,614 Gross Margin 37.7 39.1 39.5 39.1 38.0 42.6 Operating Income 1,004 980 902 813 749 674 Operating Margin 20.3 20.3 20.4 19.5 18.2 14.8 Interest Expense 117.7 89.5 67.9 65.3 64.4 71.5 Pretax Income 877 773 836 733 638 344 Tax Rate 36.2 36.2 29.3 36.6 36.7 39.7 Net Income before Extraordinary Items 559 493 591 465 404 207 Net Income Growth 13.3 (16.5) 27.1 15.2 94.8 (38.1) Net Margin 11.3 10.2 13.3 11.1 9.8 4.5 EPS excl Extraordinary Items 222211 EPS Growth 17.6 (13.5) 30.7 20.1 95.3 (38.0) Shares Outstanding 230.3 240.5 246.6 259.1 268.4 271.3 Dividends per Share 111111 Payout Ratio 44.0 46.7 36.3 41.1 43.0 77.7 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 1,418 1,409 1,182 1,132 1,264 1,168 Total Assets 4,158 4,295 3,798 3,583 3,481 3,247 Current Liabilities 1,454 1,518 1,285 586 547 606 Long-Term Debt 1,248 943 691 968 852 877 Total Debt 2,092 1,762 1,313 981 880 885 Current Ratio 0.98 0.93 0.92 1.93 2.31 1.93 Quick Ratio 0.53 0.53 0.49 1.09 1.39 1.08 EBIT / Interest 8.4 9.6 13.3 12.2 10.9 5.8 Total Assets/Equity 6.1 4.2 3.5 2.8 2.5 2.8 L-T Debt % Total Capitalization 64.6 48.0 38.8 43.1 38.3 43.3 Inventory Turnover 4.9 5.0 5.1 5.1 5.0 4.7 Accounts Receivable Turnover 9.1 10.0 10.8 10.7 11.2 12.3 Total Asset Turnover 1.2 1.2 1.2 1.2 1.2 1.4 Return on Assets 13.2 12.2 16.0 13.2 12.0 6.2 Return on Equity 65.6 46.7 49.9 35.1 32.0 17.8
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Hershey Co. (HSY-US) 46.60 10,628 25.3 18.6 13.9 2.1 Nestlé S.A. (NESN-CH) 414.54 159,070 21.1 3.8 11.8 1.9 Cadbury Schweppes plc (CBRY-GB) 11.33 23,837 41.9 3.1 13.2 1.9 Mars, Incorporated (Private)
Hershey Co. (HSY-US) Hershey Company (The) Formerly known as Hershey Foods Corporation. The Group's principal activities are to manufacture, distribute and sell confectionery, snack, refreshment and grocery products. The Group sells its confectionery and snack products in the form of chocolate bars, cookies and boxed items, refreshment products in the form of gum and mints, and grocery products in the form of baking ingredients, chocolate drink mixes, peanut butter, dessert toppings and beverages. The confectionery and snack products are sold under more than 50 brand names, few of which are Hershey's, Reese's, Hershey's Kisses, Almond Joy, among others. The Group's products are sold in the United States, Canada, Mexico Brazil and other international locations, such as Japan, Korea, the Philippines and China through sales representatives and food brokers, primarily to wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires, department stores, and natural food stores. Since 2004, the company has acquired the Mauna Loa Macadamia Nut Corp., Joseph Schmidt Confections, the San Francisco-based chocolatier and in 2006, it acquired Dagoba Organic Chocolate, a boutique chocolate maker based in Ashland, Oregon. In April 2007 the company started a joint venture with Lotte Confectionery Co. Ltd. to set up a chocolate manufacturing plant in China as part of its global growth strategy.
Aug 28 2007 MIRAE ASSET RESEARCH 50 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Kraft Foods Inc. (KFT-US) KFT-US 50075N104 2764296 NYSE Common stock Current 52 Wk YTD Market 52 Wk Headqrters Northfield Illinois USA +1 847 646-2000 Price Range PChg Val (M) Beta Web Site http://www.kraft.com 32.100 37 - 30 -10.1 50,612 1.06 Industry Food: Major Diversified (2405) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 72.7 % Insider Hldgs 0.2 % 18.9 1.8 12.0 1.4 3.1 Q3 2007 Earnings Release (Proje 23-Oct-2007 12:00AM
Ratios Relative Strength vs. S&P 500 Stock Index Latest 3 Yr Avg 5 Yr Avg 106 104 Gross Margin 36.2 36.4 37.8 102 EBITD Margin 17.9 18.3 20.1 100 98 Net Margin 8.9 8.6 9.7 96 R&D%Sales 1.2 1.2 1.2 94 92 ROA 5.4 4.9 5.4 90 ROE 10.5 9.8 11.2 88 86 Debt%Equity 37.9 39.2 44.1 84 Payout Ratio 51.9 50.7 42.7 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 34,356 34,115 32,175 31,010 29,723 33,875 Revenue Growth 0.7 6.0 3.8 4.3 (12.3) (2.3) Cost of Goods Sold * 21,922 21,799 20,262 18,837 17,727 18,493 Gross Margin 36.2 36.1 37.0 39.3 40.4 45.4 Operating Income 5,255 5,210 5,315 5,973 6,287 4,966 Operating Margin 15.3 15.3 16.5 19.3 21.2 14.7 Interest Expense 532 651 677 678 854 1,452 Pretax Income 4,016 4,116 3,946 5,346 5,267 3,447 Tax Rate 23.7 29.4 32.3 34.9 35.5 45.4 Net Income before Extraordinary Items 3,060 2,904 2,669 3,476 3,394 1,882 Net Income Growth 5.4 8.8 (23.2) 2.4 80.3 7.2 Net Margin 8.9 8.5 8.3 11.2 11.4 5.6 EPS excl Extraordinary Items 1.85 1.72 1.55 2.01 1.96 1.17 EPS Growth 7.6 11.0 (22.9) 2.6 67.5 15.8 Shares Outstanding 1,636.0 1,669.9 1,705.4 1,721.9 1,730.6 1,735.0 Dividends per Share 0.96 0.87 0.77 0.66 0.56 0.26 Payout Ratio 51.9 50.6 49.7 32.8 28.6 22.2 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 8,254 8,153 9,722 8,124 7,456 7,006 Total Assets 55,574 57,628 59,928 59,285 57,100 55,798 Current Liabilities 10,473 8,724 9,078 7,861 7,169 8,875 Long-Term Debt 7,081 8,475 9,723 11,591 12,976 13,134 Total Debt 10,821 11,200 12,518 13,462 14,443 16,007 Current Ratio 0.79 0.93 1.07 1.03 1.04 0.79 Quick Ratio 0.45 0.55 0.69 0.61 0.57 0.45 EBIT / Interest 8.5 7.3 6.8 8.9 7.2 3.4 Total Assets/Equity 1.9 1.9 2.0 2.1 2.2 2.4 L-T Debt % Total Capitalization 19.9 22.3 24.5 28.9 33.4 35.9 Inventory Turnover 6.4 6.4 6.0 5.6 5.5 6.1 Accounts Receivable Turnover 9.5 9.9 9.3 9.6 9.5 10.6 Total Asset Turnover 0.6 0.6 0.5 0.5 0.5 0.6 Return on Assets 5.4 4.9 4.5 6.0 6.0 3.5 Return on Equity 10.5 9.8 9.1 12.8 13.8 8.3
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Kraft Foods Inc. (KFT-US) 32.10 50,612 18.9 1.8 12.0 1.4 Nestlé S.A. (NESN-CH) 414.54 159,070 21.1 3.8 11.8 1.9 ConAgra Foods, Inc. (CAG-US) 25.25 12,368 18.7 2.7 12.4 1.0 Sara Lee Corporation (SLE-US) 16.66 12,238 29.2 4.7 9.3 1.0
Kraft Foods Inc. (KFT-US) Kraft Foods Inc.. The Group's principal activity is to manufacture and market packaged retail food products. It operates through its subsidiaries, Kraft Foods North America Inc and Kraft Foods International Inc. The Group's brands span five consumer sectors: Snacks, Beverages, Cheese, Grocery and Convenient Meals. Products include cookies, crackers, confectionery, coffee, aseptic juice drinks, powdered beverages, natural, processed and cream cheese, ready-to-eat cereals, enhancers and desserts and convenient meals such as frozen pizza, packaged dinners, lunch combinations and processed meats. The Group's main brands include Kraft, Jacobs, Philadelphia, Maxwell House, Nabisco, Oscar Mayer and Post. The Group has operations in 72 countries with products sold in over 155 countries. In 2005, Kraft expands into Croatia and Slovenia bringing to 70 the total number of countries where the company has operations. In 2007, Kraft spun-off to Altria shareholders and in July, the company bought Groupe Danone's biscuit (cookie) and cereal division for $7.2 billion.
Aug 28 2007 MIRAE ASSET RESEARCH 51 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Kellogg Co. (K-US) K-US 487836108 2486813 NYSE Common stock Current 52 Wk YTD Market 52 Wk Headqrters Battle Creek Michigan USA +1 269 961-2000 Price Range PChg Val (M) Beta Web Site http://www.kelloggs.com 54.170 56 - 48 8.2 21,437 0.33 Industry Food: Major Diversified (2405) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 84.6 % Insider Hldgs 0.4 % 20.1 8.9 14.8 1.9 2.3 Q3 2007 Earnings Release 29-Oct-2007 12:00AM Ratios Relati ve Strength vs. S&P 500 Stock Index Latest 3 Yr Avg 5 Yr Avg 106 104 Gross Margin 44.2 45.0 45.0 102 EBITD Margin 19.4 21.0 21.6 100 Net Margin 9.2 9.4 9.1 98 R&D%Sales 1.7 1.7 1.6 96 ROA 9.4 9.0 8.4 94 ROE 46.1 45.8 57.3 92 Debt%Equity 243.8 224.8 334.2 90 Payout Ratio 45.3 45.8 49.5 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 10,907 10,177 9,614 8,812 8,304 8,853 Revenue Growth 7.2 5.9 9.1 6.1 (6.2) 27.3 Cost of Goods Sold * 6,082 5,522 5,299 4,828 4,561 4,129 Gross Margin 44.2 45.7 44.9 45.2 45.1 53.4 Operating Income 1,766 1,840 1,681 1,625 1,517 1,201 Operating Margin 16.2 18.1 17.5 18.4 18.3 13.6 Interest Expense 307.4 313.3 308.6 354.9 391.2 351.5 Pretax Income 1472 1425 1366 1170 1144 804 Tax Rate 31.7 31.2 34.8 32.7 37.0 40.1 Net Income before Extraordinary Items 1004 980 891 787 721 482 Net Income Growth 2.4 10.1 13.1 9.2 49.6 (18.0) Net Margin 9.2 9.6 9.3 8.9 8.7 5.4 EPS excl Extraordinary Items 322221 EPS Growth 6.4 10.3 11.5 9.7 48.3 (18.6) Shares Outstanding 397.7 405.3 413.0 409.7 407.9 406.6 Dividends per Share 111111 Payout Ratio 45.3 44.9 47.2 52.6 57.7 85.6 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 2,427 2,197 2,122 1,797 1,763 1,902 Total Assets 10,714 10,575 10,790 10,231 10,219 10,369 Current Liabilities 4,020 3,163 2,846 2,766 3,015 2,208 Long-Term Debt 3,053 3,703 3,893 4,265 4,519 5,619 Total Debt 5,044 4,897 4,881 5,164 5,717 6,215 Current Ratio 0.60 0.69 0.75 0.65 0.58 0.86 Quick Ratio 0.40 0.47 0.51 0.41 0.38 0.60 EBIT / Interest 5.8 5.5 5.4 4.3 3.9 3.3 Total Assets/Equity 5.2 4.6 4.8 7.1 11.4 11.9 L-T Debt % Total Capitalization 59.6 61.9 63.3 74.7 83.5 86.6 Inventory Turnover 7.9 7.9 8.0 7.7 7.7 8.1 Accounts Receivable Turnover 12.0 12.3 12.6 11.8 11.0 12.2 Total Asset Turnover 1.0 1.0 0.9 0.9 0.8 1.2 Return on Assets 9.4 9.2 8.5 7.7 7.0 6.3 Return on Equity 46.1 43.2 48.1 67.3 81.6 54.5
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Kellogg Co. (K-US) 54.17 21,437 20.1 8.9 14.8 1.9 Nestlé S.A. (NESN-CH) 414.54 159,070 21.1 3.8 11.8 1.9 Kraft Foods Inc. (KFT-US) 32.10 50,612 18.9 1.8 12.0 1.4 General Mills, Inc. (GIS-US) 56.80 18,755 17.9 3.6 11.4 1.6
Kellogg Co. (K-US) Kellogg Company. The Group's principal activities are to manufacture and market ready to eat cereal and convenience foods, including cookies, crackers, toaster pastries, cereal bars, fruit snacks, frozen waffles, and veggie foods. The products of the Group are marketed under brand names, which includes Kellogg's, Cheez-It, Keebler and Murray and Austin and Famous Amos. Kellogg products are manufactured in 17 countries and marketed in more than 180 countries around the world. Kellogg Company's business is broadly divided into two divisions: Kellogg North America and Kellogg International. Kellogg North America includes retail cereal, retail snacks, and frozen and specialty channels businesses in both the United States and Canada. Kellogg International is divided into businesses in Europe, Latin America, and AsiaandAustralia(Asia Pacific). A multi-year global relationship with Kellogg and Disney was formed in 2002 to introduce several new cereal and snack food products to the market.
Aug 28 2007 MIRAE ASSET RESEARCH 52 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Kirin Holdings Co. Ltd. (2503) 2503 6493745 Tokyo Common stock Current 52 Wk YTD Market 52 Wk Headqrters Chuo-Ku 104-8288 Tokyo Japan +81 3 5540 3411 Price Range PChg Val (M) Beta Web Site http://www.kirinholdings.co.jp 1538.000 1944 - 1455 -17.8 1,514,174 0.98 Industry Beverages: Alcoholic (2425) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 14.1 % Insider Hldgs 22.0 % 28.6 1.4 14.2 0.9 1.2 Interim 2007 Earnings Call 03-Aug-2007 4:00AM (EST) EPS Estimates FY 1FY 2FY 3 Relative Strength vs. Japan 135 12/07 12/08 12/09 130 Mean 57.50 61.21 66.53 125 High 62.33 70.34 77.25 120 Low 53.50 47.10 47.00 115 Exp EPS Chg 2.7 6.5 8.7 110 1 Mo Revision 0.2 -3.6 -4.7 105 3 Mo Revision -1.2 -5.2 -5.0 100 FY 1FY 2FY 3 95 Forward P/E 26.7 25.1 23.1 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Billions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 1,666 1,632 1,655 1,598 1,583 1,562 Revenue Growth 2.1 (1.4) 3.6 0.9 1.4 (1.2) Cost of Goods Sold * 1,013 969 1,033 1,012 1,027 1,027 Gross Margin 39.2 40.6 37.6 36.6 35.1 34.2 Operating Income 116 112 109 102 90 75 Operating Margin 7.0 6.8 6.6 6.4 5.7 4.8 Interest Expense 9.7 9.2 10.2 9.8 9.0 9.7 Pretax Income 112 109 110 78 75 57 Tax Rate 45.6 44.9 48.4 50.1 48.6 51.6 Net Income before Extraordinary Items 54 51 49 32 33 23 Net Income Growth 4.4 4.4 51.6 (0.4) 40.7 (29.8) Net Margin 3.2 3.1 3.0 2.0 2.1 1.5 EPS excl Extraordinary Items 56 53 51 33 33 23 EPS Growth 5.2 5.2 52.0 0.0 41.6 (29.2) Shares Outstanding 1.0 1.0 1.0 1.0 1.0 1.0 Dividends per Share 171514121212 Payout Ratio 30.4 27.2 26.7 36.1 36.1 51.1 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Billions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 576 595 621 565 524 553 Total Assets 1,948 1,922 1,806 1,746 1,686 1,614 Current Liabilities 450 477 443 443 461 442 Long-Term Debt 277 222 301 327 307 162 Total Debt 303 310 326 344 355 189 Current Ratio 1.28 1.25 1.40 1.28 1.14 1.25 Quick Ratio 1.01 1.05 1.21 1.07 0.95 1.10 EBIT / Interest 12.5 12.8 11.8 9.0 9.3 6.9 Total Assets/Equity 2.0 2.0 2.1 2.2 2.2 2.1 L-T Debt % Total Capitalization 21.8 18.6 25.9 28.9 28.6 17.2 Inventory Turnover 9.5 10.9 12.0 11.7 13.7 16.0 Accounts Receivable Turnover 5.5 5.7 5.8 5.9 6.1 6.3 Total Asset Turnover 0.9 0.9 0.9 0.9 1.0 1.0 Return on Assets 2.8 2.8 2.8 1.9 2.0 1.5 Return on Equity 5.4 5.6 5.9 4.1 4.2 3.1
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Kirin Holdings Co. Ltd. (2503) 1538.00 1,514,174 28.6 1.4 14.2 0.9 Asahi Breweries, Ltd. (2502) 1,641.00 793,564 17.7 1.6 7.2 0.5 Sapporo Holdings Limited (2501) 632.00 248,990 218.7 2.1 15.5 0.6 Suntory Ltd. (Private)
Kirin Holdings Co. Ltd. (2503) Kirin Holdings Company Limited. Formerly known as Kirin Brewery Company, Limited. The Group's principal activities are the manufacture and sale of beer and other type of alcoholic beverages. The Group is also involved in the manufacture and sale of pharmaceuticals and undertake engineering services. The operations are carried out through the following divisions: Beer; Soft drinks; Pharmaceuticals and Other. Beer division deals with beer, Scotch whiskey, French wine, brandy and champagne; Soft drinks division deals with soft drinks and carbonated drinks; Pharmaceuticals division deals with kidney, blood/tumor cancer and immunology/allergy related; Other division deals with floriculture and engineering services. The company is also engaged in the agri-bio business, the functional food business, as well as the commercial facility management and operation business, among others. In July 2007, the company shifted to a pure holding company structure and formally began operations as Kirin Holdings Company, Limited ("Kirin HC").
Aug 28 2007 MIRAE ASSET RESEARCH 53 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
KT&G Corp. (033780-KR) 033780-KR 6175076 Seoul Common stock Current 52 Wk YTD Market 52 Wk Headqrters Daejeon Korea (South) +82 42 939 5000 Price (000) Range (000) PChg Val (M) Beta Web Site http://www.ktng.com 66.900 74 - 54 18.4 9,863,903 0.60 Industry Tobacco (2430) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 34.5 % Insider Hldgs 24.8 % 14.5 2.9 11.8 3.5 3.6 Q3 2007 Earnings Release (Proje 22-Oct-2007 12:00AM EPS Estimates Relative Strength vs. Korea FY 1FY 2FY 3 12/07 12/08 12/09 115 Mean 4,724.00 5,248.12 5,700.55 110 105 High 5,359.00 6,248.42 6,938.06 100 Low 4,081.43 4,363.87 5,010.38 95 Exp EPS Chg 2.5 11.1 8.6 90 1 Mo Revision 2.1 2.2 3.5 85 3 Mo Revision 4.9 4.8 2.8 80 FY 1FY 2FY 3 Forward P/E 14.2 12.7 11.7 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Billions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 2,816 2,644 3,032 2,453 2,031 1,869 Revenue Growth 6.5 (12.8) 23.6 20.8 8.6 0.5 Cost of Goods Sold * 1,302 1,244 1,338 1,137 1,053 1,227 Gross Margin 53.8 53.0 55.9 53.6 48.1 34.4 Operating Income 857 797 1,134 814 586 489 Operating Margin 30.4 30.1 37.4 33.2 28.9 26.1 Interest Expense 3.9 2.2 13.7 41.0 31.8 3.6 Pretax Income 888 741 744 671 515 492 Tax Rate 27.3 30.1 36.5 31.4 32.3 32.3 Net Income before Extraordinary Items 649 518 472 460 349 333 Net Income Growth 25.3 9.7 2.6 31.9 4.7 26.6 Net Margin 23.0 19.6 15.6 18.8 17.2 17.8 EPS excl Extraordinary Items 4,603 3,510 3,180 3,728 2,373 1,853 EPS Growth 31.1 10.4 (14.7) 57.1 28.1 30.4 Shares Outstanding 0.1 0.1 0.1 0.2 0.2 0.2 Dividends per Share 2,400 1,700 1,600 1,600 1,400 1,400 Payout Ratio 52.1 48.4 50.3 42.9 59.0 75.6 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Billions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 2,049 2,370 2,321 2,123 2,102 2,106 Total Assets 3,857 4,116 3,995 4,059 3,958 3,729 Current Liabilities 483 404 604 653 1,111 761 Long-Term Debt 1 1 0 489 820 314 Total Debt 82 68 53 500 1,145 362 Current Ratio 4.24 5.87 3.84 3.25 1.89 2.77 Quick Ratio 1.55 2.41 1.43 0.84 0.47 0.76 EBIT / Interest 231.3 332.1 55.4 17.4 17.2 139.2 Total Assets/Equity 1.3 1.2 1.2 1.4 2.0 1.4 L-T Debt % Total Capitalization 0.0 0.0 0.0 14.8 29.2 10.7 Inventory Turnover 1.0 0.9 0.9 0.7 0.7 0.8 Accounts Receivable Turnover 6.6 7.6 10.8 12.4 13.8 16.7 Total Asset Turnover 0.7 0.7 0.8 0.6 0.5 0.5 Return on Assets 16.3 12.8 11.7 11.5 9.1 8.8 Return on Equity 20.0 15.6 15.7 19.2 15.2 12.4
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales KT&G Corp. (033780-KR) 66900.00 9,863,903 14.5 2.9 11.8 3.5 Altria Group, Inc. (MO-US) 64,625.44 136,050,050 16.8 8.9 9.9 1.6 British American Tobacco p.l.c. (BATS-GB) 30,974.92 63,175,276 17.0 5.3 15.5 3.5 Japan Tobacco Inc. (2914) 4,874,862.00 46,701,576 29.0 2.8 16.3 1.2
KT&G Corp. (033780-KR) KT&G Corporation engages in the manufacture and sale of tobacco. It primarily produces and sells cigarettes in Korea under the brand names LO CRUX, INDIGO, SEASONS, VISION, ZEST, The one, Esse Menthol, Esse Lights, Lumen, and Raison. The company also exports cigarettes under the brand names Pine Menthol Lights, Pine Lights, Pleasure, 88 Mild, Esse, Esse Lights, Esse Menthol, Esse One, Esse Field, and Carnival Full Flavor to the United States, China, and central and southeast Asia. The company was founded in 1899 and was formerly known as Korea Monopoly Corporation. It changed its name to Korea Tobacco and Ginseng Corporation in 1989 and to KT&G Corporation in 2002.
Aug 28 2007 MIRAE ASSET RESEARCH 54 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Kikkoman Corp. (2801) 2801 6490809 Tokyo Common stock Current 52 Wk YTD Market 52 Wk Headqrters Noda 278-8601 Chiba Japan +81 4 7123 5111 Price Range PChg Val (M) Beta Web Site http://www.kikkoman.com 1556.000 1887 - 1250 8.3 301,167 0.58 Industry Food: Specialty/Candy (2410) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 17.4 % Insider Hldgs 21.9 % 27.7 1.7 10.8 0.8 0.8
EPS Estimates Relative Strength vs. Japan FY 1FY 2FY 3 3/08 3/09 3/10 120 Mean 59.18 62.94 69.70 High 62.00 67.20 75.90 110 Low 57.50 58.90 63.60 100 Exp EPS Chg 6.6 6.4 10.7 1 Mo Revision 1.2 0.4 1.2 90 3 Mo Revision 6.1 4.2 80 FY 1FY 2FY 3 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07 Forward P/E 26.3 24.7 22.3
Income Statement Summary (Billions) 3/07 3/06 3/05 3/04 3/03 3/02 Net Sales 393 360 345 335 343 337 Revenue Growth 9.1 4.4 3.0 (2.3) 1.7 180.8 Cost of Goods Sold * 238 217 207 200 205 196 Gross Margin 39.5 39.7 39.9 40.2 40.2 41.8 Operating Income 22 19 18 17 18 15 Operating Margin 5.5 5.2 5.2 5.1 5.2 4.4 Interest Expense 1.0 0.7 0.5 0.6 0.9 1.2 Pretax Income 21 17 16 16 17 9 Tax Rate 40.3 35.9 35.2 34.2 43.5 45.2 Net Income before Extraordinary Items11109985 Net Income Growth 6.1 6.7 2.2 11.7 55.0 Net Margin 2.7 2.8 2.8 2.8 2.4 1.6 EPS excl Extraordinary Items 55 52 48 47 42 27 EPS Growth 7.1 7.6 2.1 12.3 53.0 Shares Outstanding 0.2 0.2 0.2 0.2 0.2 0.2 Dividends per Share 12 12 10 10 8 7 Payout Ratio 21.6 23.2 20.8 21.2 19.1 25.5 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Billions) & Ratios 3/07 3/06 3/05 3/04 3/03 3/02 Current Assets 116 119 101 100 108 115 Total Assets 345 329 292 275 270 290 Current Liabilities 67 47 69 52 55 77 Long-Term Debt 46 61 23 30 24 16 Total Debt 71 69 55 47 45 53 Current Ratio 1.74 2.55 1.45 1.93 1.94 1.49 Quick Ratio 1.29 1.97 1.07 1.45 1.49 1.12 EBIT / Interest 21.0 27.3 31.0 26.2 19.3 8.2 Total Assets/Equity 2.0 1.9 2.0 1.9 2.0 2.2 L-T Debt % Total Capitalization 20.8 26.4 13.3 17.6 15.2 10.9 Inventory Turnover 8.3 8.1 8.1 8.0 7.6 6.7 Accounts Receivable Turnover 8.4 8.3 8.4 8.4 8.5 8.5 Total Asset Turnover 1.2 1.2 1.2 1.2 1.2 1.2 Return on Assets 3.2 3.3 3.3 3.4 3.0 1.9 Return on Equity 6.2 6.4 6.6 6.8 6.3 4.1
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Kikkoman Corp. (2801) 1556.00 301,167 27.7 1.7 10.8 0.8 H. J. Heinz Company (HNZ-US) 5,258.41 1,693,370 19.0 7.9 12.7 1.6 Ajinomoto Co., Inc. (2802) 1,381.00 894,322 25.4 1.5 14.4 0.8 Suntory Ltd. (Private)
Kikkoman Corp. (2801) Kikkoman Corporation. The Group's principal activity is to manufacture and market soy sauce. The operations are carried out through the following divisions: Food manufacturing and sale; Food wholesale; Coca-Cola; and Other. Food manufacture and marketing division deals in soy sauce and other sauces, tomato ketchup, seasonings and flavorings, wine, liquors, other alcoholic drinks and delicatessen products. Food wholesale division takes care of the purchase and sale of oriental foods. The Coca-Cola division deals in coca-cola, carbonated drinks, other beverages and related operations. Other operations relate t pharmaceuticals, real estate rental and leasing and the operation of restaurants. Kikkoman engages in the development and marketing of production machinery and automated systems for food, medicines, and livestock feed; management of restaurants and coffee shops; production and marketing of plant seedlings, fruits and vegetables, compost, and garden fertilizers, as well as the provision of gardening advisory services; operation of delivery trucks and warehouse facilities; and leasing and management of real estate and car parking centers. It operates primarily in Asia, North America, South and Central America, Europe, Middle East and Africa, Australia, and New Zealand.
Aug 28 2007 MIRAE ASSET RESEARCH 55 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Hite Brewery Co. Ltd. (000140-KR) 000140-KR 6193573 Seoul Common stock Current 52 Wk YTD Market 52 Wk Headqrters Seoul Korea (South) +82 2 1588 0150 Price (000) Range (000) PChg Val (M) Beta Web Site http://www.hite.com 119.000 133 - 99 -0.4 2,522,443 0.43 Industry Beverages: Alcoholic (2425) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 15.5 % Insider Hldgs 46.5 % 23.9 2.0 6.9 1.4 0.9
EPS Estimates Relative Strength vs. Korea FY 1FY 2FY 3 12/07 12/08 12/09 130 Mean 6,804.36 7,971.61 9,074.61 120 High 8,465.75 9,518.07 10,517.62 110 Low 5,622.36 6,223.79 6,799.20 100 Exp EPS Chg 34.1 17.2 13.8 90 1 Mo Revision 3.1 1.6 0.4 80
3 Mo Revision 4.0 8.1 10.2 70 FY 1FY 2FY 3 Forward P/E 17.5 14.9 13.1 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Billions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 1,831 1,203 922 862 824 772 Revenue Growth 52.2 30.4 7.0 4.6 6.8 14.1 Cost of Goods Sold * 985 629 471 466 390 398 Gross Margin 46.2 47.7 48.9 45.9 52.7 48.4 Operating Income 312 207 179 212 211 252 Operating Margin 17.0 17.2 19.4 24.6 25.6 32.6 Interest Expense 132.1 100.3 44.3 48.7 51.3 70.3 Pretax Income 155 118 146 161 155 121 Tax Rate (4.7) 28.6 31.8 31.4 33.8 40.0 Net Income before Extraordinary Items 91 55 99 111 103 72 Net Income Growth 65.8 (44.4) (10.3) 7.6 42.3 3.4 Net Margin 5.0 4.6 10.8 12.8 12.5 9.4 EPS excl Extraordinary Items 4,987 2,991 5,417 5,933 5,439 4,804 EPS Growth 66.7 (44.8) (8.7) 9.1 13.2 (12.0) Shares Outstanding 0.0 0.0 0.0 0.0 0.0 0.0 Dividends per Share 1,100 1,100 1,100 1,100 1,000 900 Payout Ratio 22.1 36.8 20.3 18.5 18.4 18.7 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Billions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 860 1,532 456 466 417 418 Total Assets 4,038 5,227 1,995 1,994 1,906 1,706 Current Liabilities 1,270 1,313 876 732 701 790 Long-Term Debt 1,199 1,968 162 369 349 227 Total Debt 1,753 2,707 696 744 667 595 Current Ratio 0.68 1.17 0.52 0.64 0.60 0.53 Quick Ratio 0.60 1.08 0.43 0.51 0.49 0.45 EBIT / Interest 2.2 2.2 4.3 4.3 4.0 2.7 Total Assets/Equity 3.4 5.8 2.2 2.4 2.5 2.5 L-T Debt % Total Capitalization 49.9 68.5 15.3 30.7 31.3 25.0 Inventory Turnover 9.1 6.4 5.5 5.7 5.9 6.9 Accounts Receivable Turnover 4.0 3.1 2.7 2.6 2.6 2.6 Total Asset Turnover 0.4 0.3 0.5 0.4 0.5 0.4 Return on Assets 2.0 1.5 5.0 5.7 5.7 4.1 Return on Equity 8.7 6.1 11.5 13.8 14.2 11.2
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Hite Brewery Co. Ltd. (000140-KR) 119000.00 2,522,443 23.9 2.0 6.9 1.4
Hite Brewery Co. Ltd. (000140-KR) Hite Brewery Company Limited(HITE). The group operates in the beer industry in South Korea and primarily engages in the manufacture and marketing of beer principally under Hite, Prime, Stout, Exfeel, Hite Saeng, Carlsberg, Foster, Hite Pitcher, and Prime Pitcher brand names. The company, through its subsidiaries, also provides glass for bottles, press, and steel pipes; wholesales and retails imported liquors; offers spirits; and operates golf club. It sells Lancelot and Cutty Sark whiskeys; Saint Emilion, Medoc, Beaujolais, Gamay, Bishop, and Bernkastel wines; Puriss spring water; and C1 Soju. In 2006, the company confirmed that it would sell Jinro Ltd.'s wholly owned unit in Japan to expand the distiller's presence in the market there.
Aug 28 2007 MIRAE ASSET RESEARCH 56 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
IOI Corp. Bhd (1961-MY) 1961-MY B1Y3WG1 Kuala Lumpur Common stock Current 52 Wk YTD Market 52 Wk Headqrters 62502 Putrajaya Malaysia +60 3 8947 8888 Price Range PChg Val (M) Beta Web Site http://www.ioigroup.com 5.200 6 - 3 38.4 31,011 0.68 Industry Agricultural Commodities/Milling (2225) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 26.5 % Insider Hldgs 41.3 % 24.1 4.3 28.7 3.8 1.3 Q1 2008 Earnings Release (Proje 21-Nov-2007 12:00AM EPS Estimates Relative Strength vs. Malaysia FY 1FY 2FY 3 180 6/08 6/09 6/10 170 Mean 0.29 0.31 0.32 160 High 0.34 0.37 0.36 150 Low 0.27 0.23 0.25 140 Exp EPS Chg 18.7 6.6 3.6 130 1 Mo Revision 1.0 2.4 21.5 120 3 Mo Revision 12.3 11.4 23.5 110 FY 1FY 2FY 3 100 Forward P/E 18.2 17.0 16.5 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 6/06 6/05 6/04 6/03 6/02 6/01 Net Sales 6,110 6,073 4,993 3,908 2,411 1,292 Revenue Growth 0.6 21.6 27.8 62.1 86.6 (1.2) Cost of Goods Sold * 4,237 4,219 3,236 2,588 1,654 889 Gross Margin 30.6 30.5 35.2 33.8 31.4 31.1 Operating Income 1,063 1,139 1,073 783 495 327 Operating Margin 17.4 18.7 21.5 20.0 20.5 25.3 Interest Expense 130.0 109.9 59.9 72.2 48.3 49.8 Pretax Income 1125 1157 1074 771 520 408 Tax Rate 17.4 10.5 20.1 20.4 21.2 20.8 Net Income before Extraordinary Items 844 902 702 502 351 291 Net Income Growth (6.5) 28.6 39.7 43.1 20.6 (3.9) Net Margin 13.8 14.9 14.0 12.8 14.6 22.5 EPS excl Extraordinary Items 000000 EPS Growth (8.4) 25.5 20.6 29.2 19.0 (3.7) Shares Outstanding 5,705.9 5,304.4 5,335.0 4,959.8 4,190.5 3,986.3 Dividends per Share 000000 Payout Ratio 47.5 36.5 28.0 32.3 26.2 26.0 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 6/06 6/05 6/04 6/03 6/02 6/01 Current Assets 3,454 3,743 2,254 1,870 1,266 1,006 Total Assets 10,216 10,386 8,739 7,551 5,560 4,665 Current Liabilities 710 814 1,396 896 1,134 947 Long-Term Debt 2,334 3,093 1,274 1,554 412 493 Total Debt 2,496 3,219 2,049 1,893 1,120 1,057 Current Ratio 4.87 4.60 1.61 2.09 1.12 1.06 Quick Ratio 3.08 3.42 0.99 1.19 0.74 0.97 EBIT / Interest 9.7 11.5 19.0 11.7 11.8 9.2 Total Assets/Equity 1.7 2.1 2.0 2.1 1.9 1.9 L-T Debt % Total Capitalization 27.9 38.9 22.4 30.6 12.3 16.5 Inventory Turnover 3.8 4.6 3.9 4.2 6.5 4.4 Accounts Receivable Turnover 8.0 8.8 8.9 9.8 9.8 6.7 Total Asset Turnover 0.6 0.6 0.6 0.6 0.5 0.3 Return on Assets 8.2 9.4 8.6 7.7 6.9 6.5 Return on Equity 15.5 19.4 17.7 15.5 12.9 12.4
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales IOI Corp. Bhd (1961-MY) 5.20 31,011 24.1 4.3 28.7 3.8 Genting Berhad (3182-MY) 7.25 26,800 14.0 2.3 10.3 3.5 Inch Kenneth Kajang Rubber (2607-MY) 0.64 269 0.8 14.6 The Narborough Plantations PLC (NBP-GB) 4.02 53 30.4 1.8 19.2 12.6
IOI Corp. Bhd (1961-MY) IOI Corporation Berhad. The Group's principal activities are the manufacturing of oleochemicals, specialty oils and fats, palm oil refinery and palm kernel crushing. Other ctivities include developing of residential and commercial properties; cultivating and processing of oil palm and rubber; and investing in shopping mall, office complex and other roperties. The Group is also involved in the management and operation of hotels and resorts, investment holding and provision of landscape services. The Group operates in Malaysia, Europe, North America, Asia and other countries.
Aug 28 2007 MIRAE ASSET RESEARCH 57 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
ITC Ltd. (500875-IN) 500875-IN B0JGGP5 Bombay Common stock Current 52 Wk YTD Market 52 Wk Headqrters Kolkata West Bengal India +91 33 2288-9371 Price Range PChg Val (M) Beta Web Site http://www.itcportal.com 160.700 196 - 140 -8.7 604,589 0.60 Industry Tobacco (2430) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 43.0 % Insider Hldgs 32.1 % 21.9 5.7 20.3 4.7 1.9 Analyst/Shareholder Mtg 27-Jul-2007 12:00AM EPS Estimates Relati ve Strength vs. Indi a FY 1FY 2FY 3 3/08 3/09 3/10 110 Mean 8.11 9.53 11.14 High 9.05 10.20 11.78 100 Low 7.68 9.10 10.45 90 Exp EPS Chg 10.7 17.4 17.0 1 Mo Revision 1.0 1.7 17.0 80 3 Mo Revision -3.3 -2.5 -12.3 70 FY 1FY 2FY 3 Forward P/E 19.8 16.9 14.4 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Billions) 3/07 3/06 3/05 3/04 3/03 3/02 Net Sales 129 103 81 69 62 52 Revenue Growth 24.8 28.1 17.0 11.6 18.8 23.5 Cost of Goods Sold * 83 67 50 44 40 33 Gross Margin 35.5 35.3 37.4 36.0 35.5 35.8 Operating Income 37 31 26 22 20 17 Operating Margin 29.0 30.1 32.0 32.4 32.1 32.7 Interest Expense 0.1 0.2 0.5 0.3 0.4 0.8 Pretax Income 40 34 28 24 21 18 Tax Rate 31.5 30.3 31.2 31.5 34.2 33.7 Net Income before Extraordinary Items 28 23 19 16 14 12 Net Income Growth 17.7 23.8 17.0 17.7 18.2 15.4 Net Margin 21.4 22.7 23.5 23.5 22.3 22.4 EPS excl Extraordinary Items 765443 EPS Growth 17.5 23.3 16.3 17.7 18.2 14.5 Shares Outstanding 3.8 3.8 3.7 3.7 3.7 3.7 Dividends per Share 332111 Payout Ratio 42.3 42.5 40.8 30.6 27.0 28.8 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Billions) & Ratios 3/07 3/06 3/05 3/04 3/03 3/02 Current Assets 69 57 40 36 37 32 Total Assets 154 134 117 104 85 71 Current Liabilities 40 36 32 37 29 23 Long-Term Debt 112112 Total Debt 212223 Current Ratio 1.73 1.57 1.27 0.99 1.27 1.37 Quick Ratio 0.75 0.71 0.47 0.52 0.82 0.85 EBIT / Interest 423.2 196.1 56.2 71.4 51.4 23.4 Total Assets/Equity 1.4 1.5 1.5 1.6 1.6 1.6 L-T Debt % Total Capitalization 1.1 1.6 2.0 1.0 1.2 3.6 Inventory Turnover 2.4 2.4 2.4 2.9 3.2 2.8 Accounts Receivable Turnover 8.3 9.1 8.5 6.9 8.4 8.5 Total Asset Turnover 0.9 0.8 0.7 0.7 0.8 0.8 Return on Assets 19.1 18.6 17.0 17.0 17.5 17.7 Return on Equity 27.7 27.3 26.3 27.3 28.1 29.3
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales ITC Ltd. (500875-IN) 160.70 604,589 21.9 5.7 20.3 4.7 Reliance Industries Limited (500325-IN) 1,742.60 2,427,738 25.8 4.8 19.5 3.0 Hindustan Lever Limited (500696-IN) 198.20 437,383 28.8 16.7 26.0 3.5 Tata Group (Private)
ITC Ltd. (500875-IN) I.T.C. Limited(ITC). The Group's principal activities are to manufacture cigarettes and tobaccos. The Group operates through five business segments: Cigarettes, Hotels, Paperboards, Paper and Packing, Agri Business and Others. The Group is into Lifestyle retailing business, garments, greeting, gift and stationery, packaged foods and export of Indian agri-commodities. The Group provides a range of branded packaged and convenience food for its customers with its operations all over India. The brand names are India Kings, Wills, Gold Flake, Checkers, Hi-Val, Wills Sport, Expressions. In addition, ITC provides information technology services, such as CRM; product life cycle management and engineering services; ERP; supply chain management; e-business, B2B, B2C, and community portals; and business process outsourcing services. It also owns the Classic Golf Resort, a 27-hole golf course. Additionally, the company operates food retail chain under the ‘Choupal Saagars’ brand.
Aug 28 2007 MIRAE ASSET RESEARCH 58 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Ito En Ltd. (2593) Current 52 Wk YTD Market 52 Wk Headqrters Shibuya-Ku 151-8550 Tokyo Japan +81 3 5371 7111 Price Range PChg Val (M) Beta Web Site http://www.itoen.co.jp 3510.000 4180 - 3360 -3.6 312,916 0.64 Industry Beverages: Non-Alcoholic (2420) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 15.4 % Insider Hldgs 39.2 % 25.5 3.6 13.1 1.0 1.1
EPS Estimates Relati ve Strength vs. Japan FY 1FY 2FY 3 120 4/08 4/09 4/10 115 Mean 154.02 169.13 181.85 110 High 175.00 195.20 191.80 105 Low 130.50 138.10 145.70 100 Exp EPS Chg 11.9 9.8 7.5 95 1 Mo Revision -1.3 -1.2 -2.3 3 Mo Revision -1.5 -0.8 -7.0 90 FY 1FY 2FY 3 85 Forward P/E 22.8 20.8 19.3 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Billions) 4/07 4/06 4/05 4/04 4/03 4/02 Net Sales 310 288 264 239 215 205 Revenue Growth 7.7 9.2 10.3 11.4 4.9 6.2 Cost of Goods Sold * 152 143 131 120 109 104 Gross Margin 51.1 50.4 50.3 50.0 49.4 49.3 Operating Income 23 21 20 18 16 15 Operating Margin 7.3 7.3 7.5 7.3 7.3 7.4 Interest Expense 0.0 0.0 0.0 0.0 0.1 0.1 Pretax Income 22 20 19 16 15 13 Tax Rate 44.3 43.0 44.9 47.0 47.1 47.1 Net Income before Extraordinary Items121210987 Net Income Growth 4.9 11.8 19.7 9.1 18.5 (15.8) Net Margin 4.0 4.1 4.0 3.6 3.7 3.3 EPS excl Extraordinary Items 137.6 130.9 116.6 96.7 88.2 74.0 EPS Growth 5.1 12.3 20.5 9.7 19.1 (15.8) Shares Outstanding 0.1 0.1 0.1 0.1 0.1 0.1 Dividends per Share 444035252220 Payout Ratio 32.0 30.2 30.0 25.8 24.4 27.0 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Billions) & Ratios 4/07 4/06 4/05 4/04 4/03 4/02 Current Assets 78 83 77 70 66 60 Total Assets 135 119 108 100 94 90 Current Liabilities 47 41 39 37 38 31 Long-Term Debt 000007 Total Debt 000078 Current Ratio 1.65 2.01 1.99 1.89 1.73 1.96 Quick Ratio 1.23 1.55 1.58 1.48 1.32 1.44 EBIT / Interest 1830.6 126.5 87.4 Total Assets/Equity 1.6 1.5 1.6 1.6 1.7 1.7 L-T Debt % Total Capitalization 0.0 0.0 0.0 0.0 0.0 11.2 Inventory Turnover 7.9 8.2 8.4 7.8 6.9 6.2 Accounts Receivable Turnover 10.5 11.2 9.8 9.2 9.1 8.9 Total Asset Turnover 2.4 2.5 2.5 2.5 2.3 2.3 Return on Assets 9.6 10.3 10.1 9.0 8.7 7.6 Return on Equity 15.0 15.9 15.9 14.7 14.7 13.5
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Ito En Ltd. (2593) 3510.00 312,916 25.5 3.6 13.1 1.0 Tata Tea Group (500800-IN) 1,917.07 118,552 9.5 1.8 10.4 1.0 R.C. Bigelow, Inc. (Private) Sara Lee Food & Beverage (Private)
Ito En Ltd. (2593) Ito En, Ltd.. The Group's principal activity is to produce and market tea leaves and green-tea drinks. The operations are carried out through the following divisions: Beverages, Tea Leaves and Other. The Tea Leaves segment offers green tea leaves, oolong tea leaves, and other tea leaves. The Beverages segment provides green tea, oolong tea, black tea, fruit and vegetable juice, coffee, and other soft drinks. The company also provides seaweed products, Japanese sweets, and other products related to tea. Other operations include commodities like laver (edible seaweed) and Japanese sweets. Ito En markets its products through supermarkets, convenience stores, automated vending machines, and general retailers.
Aug 28 2007 MIRAE ASSET RESEARCH 59 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
InBev (INB-BE) INB-BE 4755317 Euronext Belgium Common stock Current 52 Wk YTD Market 52 Wk Headqrters 3000 Leuven Belgium +32 16 27 6111 Price Range PChg Val (M) Beta Web Site http://www.inbev.com 54.960 63 - 39 10.1 33,630 0.64 Industry Beverages: Alcoholic (2425) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 12.5 % Insider Hldgs 66.9 % 21.9 2.7 9.8 2.5 1.0 Q2 2007 Earnings Release 30-Aug-2007 1:00AM EPS Estimates Relati ve Strength vs. Belgi um FY 1FY 2FY 3 12/07 12/08 12/09 140 Mean 2.93 3.36 3.84 High 3.09 3.74 4.31 130 Low 2.52 2.89 3.37 120 Exp EPS Chg 26.2 14.9 14.3 1 Mo Revision 0.9 1.3 1.7 110 3 Mo Revision 3.4 4.4 4.7 100 FY 1FY 2FY 3 Forward P/E 18.8 16.3 14.3 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 13,308 11,656 8,568 7,044 6,992 7,303 Revenue Growth 14.2 36.0 21.6 0.7 (4.3) 29.1 Cost of Goods Sold * 5,815 5,381 4,386 3,491 3,509 6,361 Gross Margin 56.3 53.8 48.8 50.4 49.8 12.9 Operating Income 3,049 2,343 1,135 762 777 775 Operating Margin 22.9 20.1 13.2 10.8 11.1 10.6 Interest Expense 492.0 479.0 274.0 152.0 147.0 218.0 Pretax Income 2657 1793 1161 743 665 920 Tax Rate 20.0 21.8 22.7 24.9 24.4 17.7 Net Income before Extraordinary Items 1411 904 719 505 467 698 Net Income Growth 56.1 25.7 42.4 8.1 (33.1) Net Margin 10.6 7.8 8.4 7.2 6.7 9.6 EPS excl Extraordinary Items 222112 EPS Growth 53.6 0.7 28.2 8.3 (33.7) Shares Outstanding 611.9 608.1 576.1 432.0 432.0 431.1 Dividends per Share 100000 Payout Ratio 31.0 31.8 26.0 30.8 30.6 17.8 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 4,764 4,263 3,932 2,446 2,336 2,579 Total Assets 25,389 22,631 17,853 10,814 10,946 11,752 Current Liabilities 5,879 5,189 5,849 2,864 3,688 3,721 Long-Term Debt 5,146 4,466 2,217 2,198 1,762 2,310 Total Debt 6,440 5,698 4,391 2,897 3,204 3,390 Current Ratio 0.81 0.82 0.67 0.85 0.63 0.69 Quick Ratio 0.64 0.64 0.53 0.69 0.51 0.54 EBIT / Interest 6.4 4.7 5.2 5.9 5.5 5.2 Total Assets/Equity 2.1 2.0 2.1 2.3 2.3 2.4 L-T Debt % Total Capitalization 29.6 28.0 20.6 31.8 27.3 32.4 Inventory Turnover 6.0 6.1 6.7 7.7 7.0 12.6 Accounts Receivable Turnover 5.6 5.3 4.7 4.4 4.2 4.4 Total Asset Turnover 0.6 0.6 0.6 0.6 0.6 0.6 Return on Assets 5.9 4.5 5.0 4.6 4.1 6.1 Return on Equity 11.9 9.0 10.9 10.7 9.8 16.0
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales InBev (INB-BE) 54.96 33,630 21.9 2.7 9.8 2.5 SABMiller plc (SAB-GB) 19.12 30,234 22.4 2.8 9.0 2.6 Anheuser-Busch Companies, Inc. (BUD-US) 35.36 26,505 18.3 9.2 14.3 2.2 Scottish & Newcastle plc (SCTN-GB) 8.86 8,368 18.8 1.7 12.0 1.7
InBev (INB-BE) InBev SA. The Group's principal activity is to produce and distribute beer. The Group owns over 200 brands and their global brands include Stella Artois, Brahma, Beck's and Leffe. The Group produces on an average 202 Million hectoliters of beer per year. The Group is also involved in production of soft drinks and markets it under the brand name Whitbread. The Group operates mainly in North America, Latin America, Europe and Asia-Pacific. InBev has a portfolio of more than 200 local brands including in Latin America: Skol®, the third largest beer brand in the world. In Western Europe: Jupiler®, the number 1 selling beer in Belgium. In Central and Eastern Europe: Siberian Crown,® a leading premium brand sold throughout Russia. In Asia Pacific: Cass® from South Korea, and Sedrin®, a 10 million hectoliter brand in China. In 2000, InBev acquired Bass and Whitbread in the U.K., and in 2001 the company established itself in Germany, with the acquisition of Diebels. This was followed by the acquisition of Beck’s & Co., the Gilde Group and Spaten. InBev operated as a family-owned business owned business until December 2000. In 2002, InBev strengthened its position in China, by acquiring stakes in the K.K. Brewery and the Zhujiang Brewery. 2004 marked the most significant event in the company’s recent history: the combination of Interbrew and AmBev to create InBev. Also in 2004, InBev acquired the China brewery activities of the Lion Group. By adding Fujian Sedrin in 2006, this made Inbev the No. 2 brewer in China - the world's largest beer market. In March 2007, InBev invested in the Indian beer market by taking a 49% shareholding in a 'long-term joint venture agreement with RKJ Group.
Aug 28 2007 MIRAE ASSET RESEARCH 60 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Lion Nathan Ltd. (LNN-AU) LNN-AU 6538215 ASX National Common stock Current 52 Wk YTD Market 52 Wk Headqrters Sydney New South Wales Australia +61 2 9290 6600 Price Range PChg Val (M) Beta Web Site http://w w w .lion-nathan.com 8.900 10 - 8 9.1 4,741 0.51 Industry Beverages: Alcoholic (2425) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 37.6 % Insider Hldgs 47.1 % 19.8 5.9 9.7 2.5 4.4 FY 2007 Earnings Release 21-Nov-2007 12:00AM EPS Estimates Relative Strength vs. Australia FY 1FY 2FY 3 105 9/07 9/08 9/09 100 Mean 0.49 0.52 0.57 High 0.50 0.53 0.61 95 Low 0.48 0.51 0.55 90 Ex p EPS Chg 1.2 7.2 8.6 1 Mo Revision 0.2 0.6 0.7 85
3 Mo Revision 1.0 0.4 2.3 80 FY 1FY 2FY 3 Forw ard P/E 18.2 17.0 15.6 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 9/06 9/05 9/04 9/03 9/02 9/01 Net Sales 1,846 1,758 1,841 1,772 1,662 1,530 Revenue Growth 5.0 (4.5) 3.9 6.6 8.6 2.9 Cost of Goods Sold * 878 833 871 832 782 699 Gross Margin 52.4 52.6 52.7 53.1 52.9 54.4 Operating Income 407 377 355 333 324 222 Operating Margin 22.1 21.4 19.3 18.8 19.5 14.5 Interest Expense 81.3 81.4 93.5 95.2 88.0 113.3 Pretax Income 326 338 251 285 266 266 Tax Rate 31.6 33.4 36.3 36.8 39.2 42.1 Net Income before Extraordinary Items 227 225 160 180 162 152 Net Income Growth 0.9 40.4 (11.1) 11.2 6.7 4344.6 Net Margin 12.3 12.8 8.7 10.2 9.7 9.9 EPS excl Extraordinary Items 000000 EPS Growth 1.0 40.3 (11.0) 11.2 6.7 3957.1 Shares Outstanding 533.0 534.2 534.2 534.2 534.2 534.2 Dividends per Share 0 0 0 0 0 Payout Ratio 91.8 76.0 96.7 66.0 56.3 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 9/06 9/05 9/04 9/03 9/02 9/01 Current Assets 541 490 610 529 504 414 Total Assets 2,579 4,028 4,228 4,298 4,171 3,463 Current Liabilities 526 513 521 431 494 392 Long-Term Debt 1,110 985 1,180 1,402 1,361 1,070 Total Debt 1,149 1,086 1,288 1,435 1,428 1,078 Current Ratio 1.03 0.96 1.17 1.23 1.02 1.06 Quick Ratio 0.60 0.57 0.84 0.83 0.63 0.76 EBIT / Interest 5.0 5.1 3.7 4.0 4.0 3.3 Total Assets/Equity 3.4 1.6 1.7 1.8 1.9 1.8 L-T Debt % Total Capitalization 59.7 28.3 32.1 36.7 38.1 35.8 Inventory Turnover 4.2 4.5 5.0 4.5 5.0 6.0 Accounts Receivable Turnover 6.4 4.9 4.9 5.7 6.2 5.7 Total Asset Turnover 0.6 0.4 0.4 0.4 0.4 0.4 Return on Assets 6.9 5.4 3.8 4.3 4.2 4.4 Return on Equity 14.0 9.0 6.5 7.8 7.8 8.5
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Lion Nathan Ltd. (LNN-AU) 8.90 4,741 19.8 5.9 9.7 2.5 Anheuser-Busch Companies, Inc. (BUD-US) 58.66 43,971 18.3 9.2 14.3 2.2 Foster's Group Limited (FGL-AU) 5.96 12,155 9.7 2.5 12.9 2.6 Asia Pacific Brew eries Limited (A46-SG) 10.75 2,774 26.4 3.7 14.7 2.1
Lion Nathan Ltd. (LNN-AU) Lion Nathan Ltd. The Group's principal activities are producing, marketing and distributing premium alcoholic beverages. Major brands include Tooheys, XXXX, Hahn, West End, Sw an, Emu, Southmark, James Squire, Becks, Pilsner Urquell, Lion, Speight's, Steinlager, Waikato, Canterbury Draught, Mac's, Stella Artois, Guinness and Kikenny, Taihushui, Rheineck, Kirin Pure and Light, Argyle, Bridgew ater Mill, Croser, Knappstein, Mitchelton, Petaluma, Preece, Sharefarmers, Smithbrook, St. Hallett Stonier, Tatachilla and Wither Hills. Its principal operations are in Australia and New Zealand, how ever some of its beer and w ine brands are distributed globally. LNI also exports its products to approximately 20 countries. In addition, the company engages in contract bottling for the beverages industry; liquor retailing through 38 stores throughout New Zealand, as of December 20, 2006, as w ell as through its online channel; and malt extract production. In March 2007, the company announced its acquisition of the Inner Circle Rum trademark and distillery operations.
Aug 28 2007 MIRAE ASSET RESEARCH 61 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Lotte Confectionary Co. Ltd. (004990-KR) 004990-KR 6535432 Seoul Common stock Current 52 Wk YTD Market 52 Wk Headqrters Seoul Korea (South) +82 2 2670 6114 Price (000) Range (000) PChg Val (M) Beta Web Site http://w w w .lotteconf.co.kr 1625.000 1840 - 1029 34.3 2,309,775 1.15 Industry Food: Specialty/Candy (2410) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 28.2 % Insider Hldgs 51.0 % 7.7 1.4 17.3 2.1 0.2
EPS Estimates Relative Strength vs. Korea FY 1FY 2FY 3 150 12/07 12/08 12/09 Mean 92,900.76 104,460.87 117,731.57 140 High 92,900.76 104,460.87 117,731.57 130 Low 92,900.76 104,460.87 117,731.57 120 Exp EPS Chg -56.2 12.4 12.7 1 Mo Revision 3.6 3.5 0.9 110 3 Mo Revision 8.5 18.9 3.3 100
FY 1FY 2FY 3 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Billions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 1,121 1,174 1,150 1,106 1,064 980 Revenue Growth (4.5) 2.1 4.0 3.9 8.6 11.2 Cost of Goods Sold * 723 764 734 655 635 687 Gross Margin 35.5 34.9 36.2 40.7 40.3 29.8 Operating Income 71 89 96 149 151 108 Operating Margin 6.3 7.5 8.3 13.5 14.2 11.1 Interest Expense 0.6 0.6 3.3 3.5 6.6 10.5 Pretax Income 343 164 79 142 138 95 Tax Rate 13.1 39.6 29.4 28.6 28.3 30.4 Net Income before Extraordinary Items 298 99 56 101 99 66 Net Income Growth 200.8 77.5 (44.9) 2.4 50.1 39.1 Net Margin 26.6 8.4 4.9 9.2 9.3 6.7 EPS excl Extraordinary Items 211,903 70,437 39,689 71,342 69,660 46,399 EPS Growth 200.8 77.5 (44.4) 2.4 50.1 39.1 Shares Outstanding 0.0 0.0 0.0 0.0 0.0 0.0 Dividends per Share 2,750 2,500 2,000 2,000 2,000 1,500 Payout Ratio 1.3 3.5 5.0 2.8 2.9 3.2 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Billions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 429 497 450 475 395 314 Total Assets 1,947 1,648 1,107 1,078 967 909 Current Liabilities 175 240 229 310 256 336 Long-Term Debt 00115112 Total Debt 11 8 7 61 71 131 Current Ratio 2.46 2.07 1.96 1.53 1.54 0.94 Quick Ratio 1.99 1.72 1.65 1.32 1.27 0.74 EBIT / Interest 559.7 266.7 24.7 41.5 22.0 10.0 Total Assets/Equity 1.2 1.3 1.2 1.4 1.4 1.6 L-T Debt % Total Capitalization 0.0 0.0 0.1 0.1 7.0 2.1 Inventory Turnover 8.7 9.8 10.6 9.6 9.3 11.2 Accounts Receivable Turnover 8.3 8.9 9.4 10.0 10.8 11.1 Total Asset Turnover 0.6 0.9 1.1 1.1 1.1 1.1 Return on Assets 16.6 7.2 5.1 9.9 10.6 7.7 Return on Equity 20.9 9.2 6.7 14.0 15.9 13.0
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Lotte Confectionary Co. Ltd. (004990-KR) 1625000.00 2,309,775 7.7 1.4 17.3 2.1
Lotte Confectionary Co. Ltd. (004990-KR) Lotte Confectionery Co. The Group operates in the confectionery industry in South Korea and internationally. It offers various products, including chew ing gums, candies, biscuits and snacks, chocolates, soft cakes, and ice creams. In January 2007, Hershey Co., and Lotte Confectionery Co. Ltd. announced a manufacturing joint venture in China that w ill produce Hershey and Lotte products for the market in China.
Aug 28 2007 MIRAE ASSET RESEARCH 62 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Lotte Chilsung Beverage Co. Ltd. (005300-KR) 005300-KR 6535443 Seoul Common stock Current 52 Wk YTD Market 52 Wk Headqrters Seoul Korea (South) +82 2 3479 9114 Price (000) Range (000) PChg Val (M) Beta Web Site http://www.lottechilsung.co.kr 1495.000 1660 - 1089 6.8 1,849,315 0.90 Industry Beverages: Non-Alcoholic (2420) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 29.8 % Insider Hldgs 52.9 % 25.8 1.2 13.0 1.7 0.2
EPS Estimates Relati ve Strength vs. Korea FY 1FY 2FY 3
12/07 12/08 12/09 120 Mean 54,869.04 64,971.98 72,554.84 High 59,268.00 68,269.00 77,368.00 110 Low 50,470.07 61,674.97 67,741.69 100 Exp EPS Chg -5.3 18.4 11.7 1 Mo Revision -27.7 -22.6 27.7 90 3 Mo Revision -27.7 -22.6 18.6 80 FY 1FY 2FY 3
Forward P/E 27.2 23.0 20.6 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Billions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 1,103 1,092 1,162 1,109 1,104 1,102 Revenue Growth 0.9 (6.0) 4.8 0.4 0.2 19.4 Cost of Goods Sold * 708 843 730 797 675 634 Gross Margin 35.8 22.8 37.2 28.1 38.9 42.4 Operating Income 75 95 150 162 165 138 Operating Margin 6.8 8.7 12.9 14.6 15.0 12.5 Interest Expense 0.2 0.6 2.3 2.6 2.7 7.9 Pretax Income 102 114 163 170 172 141 Tax Rate 31.0 28.2 28.0 29.3 29.4 30.9 Net Income before Extraordinary Items 72 82 117 120 121 97 Net Income Growth (11.8) (30.6) (2.3) (0.8) 24.6 34.0 Net Margin 6.5 7.5 10.1 10.8 11.0 8.8 EPS excl Extraordinary Items 57,953 65,933 94,773 97,197 97,747 78,466 EPS Growth (12.1) (30.4) (2.5) (0.6) 24.6 34.0 Shares Outstanding 0.0 0.0 0.0 0.0 0.0 0.0 Dividends per Share 2,250 2,250 2,000 2,000 2,000 1,500 Payout Ratio 3.9 3.4 2.1 2.1 2.0 1.9 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Billions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 586 557 487 414 295 236 Total Assets 1,816 1,281 1,149 1,064 943 860 Current Liabilities 291 300 304 337 308 322 Long-Term Debt 00003029 Total Debt 12823423076 Current Ratio 2.01 1.86 1.60 1.23 0.96 0.73 Quick Ratio 1.70 1.55 1.29 0.96 0.74 0.55 EBIT / Interest 472.1 176.0 71.4 67.5 65.5 18.8 Total Assets/Equity 1.2 1.3 1.4 1.5 1.6 1.8 L-T Debt % Total Capitalization 0.0 0.0 0.0 0.0 4.6 5.7 Inventory Turnover 7.8 9.1 7.8 10.0 10.6 11.5 Accounts Receivable Turnover 9.4 9.8 12.7 13.8 15.8 16.5 Total Asset Turnover 0.7 0.9 1.0 1.1 1.2 1.4 Return on Assets 4.6 6.7 10.6 12.0 13.4 11.9 Return on Equity 5.9 9.1 15.0 18.0 22.2 22.4
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Lotte Chilsung Beverage Co. Ltd. (005300-KR) 1495000.00 1,849,315 25.8 1.2 13.0 1.7
Lotte Chilsung Beverage Co. Ltd. (005300-KR) Lotte Chilsung Beverage Co., Ltd.. The Group engages in the manufacture and sale of various alcoholic and nonalcoholic beverages in Korea. Its products primarily include lemon lime soda, milk soda, refreshing water, coffee and tea, fruit juices, alcohol and spirits, functional beverages, and sac juice. The company also markets and sells its products in Japan, the People's Republic of China, the United States, Russia, and East Asia. In 2005 the company established Lotte Aodeli Beverage Co., Ltd, the joint-stock company with Luo He Chang Da Co., Ltd and Lotte Huabang Beverage Co. Ltd in China.
Aug 28 2007 MIRAE ASSET RESEARCH 63 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Nissin Food Products Co. Ltd. (2897) 2897 6641760 Tokyo Common stock Current 52 Wk YTD Market 52 Wk Headqrters Yodogawa-Ku, Osaka 532-8524 Osaka Japan +81 6 6305 Price Range PChg Val (M) Beta Web Site http://www.nissinfoods.co.jp 3660.000 4610 - 3340 -17.0 447,484 0.45 Industry Food: Specialty/Candy (2410) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 27.8 % Insider Hldgs 41.3 % 25.3 1.6 16.3 1.2 1.4 FY 2006 Earnings Release 11-May-2007 12:00AM (EST) EPS Estimates Relati ve Strength vs. Japan FY 1FY 2FY 3 3/08 3/09 3/10 120 Mean 167.08 171.48 178.04 115 High 181.60 191.40 203.70 110 Low 149.06 163.58 166.00 105
Exp EPS Chg 7.0 2.6 3.8 100 1 Mo Revision -2.7 -1.8 -2.0 95 3 Mo Revision -1.6 -4.1 4.9 90 FY 1FY 2FY 3 Forward P/E 21.9 21.3 20.6 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Billions) 3/07 3/06 3/05 3/04 3/03 3/02 Net Sales 358 322 317 320 315 308 Revenue Growth 11.4 1.5 (1.0) 1.5 2.2 2.5 Cost of Goods Sold * 175 158 157 162 160 158 Gross Margin 51.1 50.8 50.5 49.4 49.2 48.7 Operating Income 34 32 29 23 27 25 Operating Margin 9.4 9.9 9.1 7.3 8.4 8.0 Interest Expense 0.0 0.0 0.0 0.1 0.0 0.1 Pretax Income 34 30 27 25 26 20 Tax Rate 43.3 48.5 37.8 42.3 42.7 37.9 Net Income before Extraordinary Items 19 15 17 14 14 12 Net Income Growth 23.3 (7.4) 18.2 (2.6) 20.8 (21.5) Net Margin 5.3 4.8 5.2 4.4 4.6 3.9 EPS excl Extraordinary Items 156 125 134 114 116 94 EPS Growth 24.8 (6.9) 18.3 (1.8) 23.2 (21.3) Shares Outstanding 0.1 0.1 0.1 0.1 0.1 0.1 Dividends per Share 303030303024 Payout Ratio 19.2 24.0 22.3 26.4 25.9 25.6 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Billions) & Ratios 3/07 3/06 3/05 3/04 3/03 3/02 Current Assets 160 160 133 138 140 150 Total Assets 410 367 355 338 320 314 Current Liabilities 96 78 77 76 80 79 Long-Term Debt 000000 Total Debt 433557 Current Ratio 1.66 2.06 1.73 1.81 1.75 1.90 Quick Ratio 1.51 1.89 1.57 1.66 1.60 1.75 EBIT / Interest 700.5 746.3 630.6 467.1 532.7 159.1 Total Assets/Equity 1.5 1.4 1.4 1.4 1.4 1.4 L-T Debt % Total Capitalization 0.1 0.0 0.0 0.0 0.0 0.0 Inventory Turnover 12.9 12.6 12.9 13.6 13.6 14.2 Accounts Receivable Turnover 7.9 8.5 8.1 8.4 8.5 8.3 Total Asset Turnover 0.9 0.9 0.9 1.0 1.0 1.0 Return on Assets 4.9 4.3 4.8 4.3 4.5 3.7 Return on Equity 7.0 5.9 6.6 5.9 6.2 5.2
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Nissin Food Products Co. Ltd. (2897) 3660.00 447,484 25.3 1.6 16.3 1.2 First Pacific Company Limited (142-HK) 76.68 245,757 12.9 3.6 6.9 0.9 Ryoshoku Limited (7451) 2,775.00 121,985 64.2 1.8 14.2 0.1 Kato Sangyo Co., Ltd. (9869) 1,461.00 55,604 19.6 0.9 9.7 0.1
Nissin Food Products Co. Ltd. (2897) Nissin Food Products Co Ltd. The Group's principal activity is to manufacture and market instant noodles and oil fried processed food products. The Group is also involved in the manufacture of frozen and chilled foods and other processed foods. In addition, the company markets products, such as Psyllium Noodles and Chitosan Noodles, as well as products containing psyllium, a natural dietary fiber, that include ramen, corn flakes, powdered drink mixes, and fiber Jelly. It also offers pillow-type and cup-type instant noodles. The Operations are carried out through the following divisions: Noodle and Other. The Noodles division includes cup noodles, refrigerate food and child food. The Other includes sweet stuff and cold drinks.
Aug 28 2007 MIRAE ASSET RESEARCH 64 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Nong Shim Co. Ltd. (004370-KR) 004370-KR 6638115 Seoul Common stock Current 52 Wk YTD Market 52 Wk Headqrters Korea (South) Price (000) Range (000) PChg Val (M) Beta Web Site http://www.nongshim.com 221.000 287 - 216 -22.5 1,344,343 0.56 Industry Food: Specialty/Candy (2410) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 18.6 % Insider Hldgs 55.9 % 11.8 1.4 6.1 0.8 1.8
EPS Estimates Relati ve Strength vs. Korea FY 1FY 2FY 3 100 12/07 12/08 12/09 Mean 20,935.05 22,877.88 24,982.95 90 High 24,503.45 25,835.37 28,721.76 80 Low 18,779.00 20,719.29 21,733.43 Exp EPS Chg 11.8 9.3 9.2 70
1 Mo Revision -4.3 -3.9 -4.5 60 3 Mo Revision -6.1 -6.2 -7.7 50 FY 1FY 2FY 3 Forward P/E 10.6 9.7 8.8 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Billions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 1,672 1,638 1,661 1,567 1,377 1,284 Revenue Growth 2.1 (1.4) 6.0 13.8 7.3 10.1 Cost of Goods Sold * 1,123 1,090 1,132 1,162 967 969 Gross Margin 32.8 33.4 31.8 25.9 29.8 24.5 Operating Income 141 148 155 150 108 106 Operating Margin 8.5 9.0 9.4 9.6 7.8 8.2 Interest Expense 8.9 5.3 3.7 4.8 6.2 7.0 Pretax Income 157 165 191 148 116 110 Tax Rate 28.1 27.3 31.8 30.1 29.0 31.6 Net Income before Extraordinary Items 113 120 130 103 80 74 Net Income Growth (5.6) (8.1) 26.5 29.1 7.1 (1.9) Net Margin 6.8 7.3 7.8 6.6 5.8 5.8 EPS excl Extraordinary Items 18,727 20,725 22,558 16,427 11,419 10,658 EPS Growth (9.6) (8.1) 37.3 43.9 7.1 (2.2) Shares Outstanding 0.0 0.0 0.0 0.0 0.0 0.0 Dividends per Share 4,000 4,000 4,000 3,000 1,500 750 Payout Ratio 21.4 19.3 17.7 18.3 13.1 7.0 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Billions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 655 647 503 431 415 282 Total Assets 1,575 1,534 1,369 1,254 1,333 1,215 Current Liabilities 519 465 466 466 468 418 Long-Term Debt 22 123 53 63 33 34 Total Debt 106 188 109 179 128 167 Current Ratio 1.26 1.39 1.08 0.93 0.89 0.67 Quick Ratio 1.10 1.19 0.90 0.75 0.73 0.53 EBIT / Interest 18.7 32.3 53.2 32.0 19.7 16.6 Total Assets/Equity 1.6 1.8 1.8 1.9 1.9 1.8 L-T Debt % Total Capitalization 2.3 12.4 6.4 8.6 4.5 4.9 Inventory Turnover 12.8 12.3 13.7 15.0 14.1 16.1 Accounts Receivable Turnover 13.1 13.5 14.6 15.1 14.8 16.7 Total Asset Turnover 1.1 1.1 1.3 1.2 1.1 1.1 Return on Assets 7.3 8.2 9.9 8.0 6.3 6.1 Return on Equity 12.4 14.6 18.1 14.9 11.6 12.2
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Nong Shim Co. Ltd. (004370-KR) 221000.00 1,344,343 11.8 1.4 6.1 0.8 Campbell Soup Company (CPB-US) 35,010.55 13,564,624 17.5 8.8 12.6 1.8 Nissin Food Products Co., Ltd. (2897) 29,637.87 3,623,624 25.3 1.6 16.3 1.2 Katokichi Co., Ltd. (2873) 4,251.33 688,864 1.0 18.4 0.3
Nong Shim Co. Ltd. (004370-KR) Nong Shim Company Limited. The Group's principal activities are the manufacture and sale of food products specializing in instant noodles, snacks, instant rice and fruit juice. Major brand includes Shin ramyun, Ansung tang myun, Neoguri, Chapagetti, Bowl noodle hot taste, Big bowl noodle shrimp taste, Shin cup noodle and Saeng saeng bowl udon taste. Its products are exported to over 80 countries overseas. The company also engages in management and administration consulting, market research and business operation consulting, and real estate business. In addition, it involves in providing technology information, and research and development services; managing sports facilities; operating food-processing and packaging businesses, as well as advertising business, including producing and sales operation of advertising facilities; and specialized packaging material manufacturing.
Aug 28 2007 MIRAE ASSET RESEARCH 65 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Nippon Meat Packers Inc. (2282) 2282 6640767 Tokyo Common stock Current 52 Wk YTD Market 52 Wk Headqrters Chuo-Ku, Osaka 541-0054 Osaka Japan +81 6 6282 3063 Price Range PChg Val (M) Beta Web Site http://www.nipponham.co.jp 1234.000 1589 - 1175 -5.1 281,593 0.62 Industry Food: Meat/Fish/Dairy (2415) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 20.1 % Insider Hldgs 33.3 % 24.7 0.9 14.6 0.3 1.3 Q1 2007 Earnings Release (Proje 10-Aug-2007 12:00AM (EST) EPS Estimates Relative Strength vs. Japan FY 1FY 2FY 3 3/08 3/09 3/10 100 Mean 39.37 58.44 67.10 95 High 41.63 63.50 74.80 90 Low 32.10 51.70 58.30 Exp EPS Chg -21.1 48.4 14.8 85
1 Mo Revision -8.0 -5.6 -5.6 80 3 Mo Revision -18.0 -11.9 75 FY 1FY 2FY 3 Forward P/E 31.3 21.1 18.4 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Billions) 3/07 3/06 3/05 3/04 3/03 3/02 Net Sales 977 964 935 926 910 945 Revenue Growth 1.4 3.1 0.9 1.8 (3.7) 3.8 Cost of Goods Sold * 790 783 736 734 722 738 Gross Margin 19.2 18.7 21.2 20.7 20.7 21.9 Operating Income 16 10 27 24 23 38 Operating Margin 1.7 1.0 2.9 2.6 2.5 4.1 Interest Expense 2.9 2.5 2.5 3.0 3.3 3.1 Pretax Income 14222201331 Tax Rate 15.0 99.3 47.1 45.9 66.9 41.4 Net Income before Extraordinary Items 11 0 12 11 4 18 Net Income Growth 1138499.9 (100.0) 11.3 141.3 (75.1) (30.8) Net Margin 1.2 0.0 1.3 1.1 0.5 1.9 EPS excl Extraordinary Items 49.9 0.0 51.9 46.6 19.3 77.6 EPS Growth 498800.0 (100.0) 11.3 141.5 (75.1) (30.8) Shares Outstanding 0.2 0.2 0.2 0.2 0.2 0.2 Dividends per Share 161616161616 Payout Ratio 32.1 160,000.0 30.9 34.3 82.9 20.6 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Billions) & Ratios 3/07 3/06 3/05 3/04 3/03 3/02 Current Assets 293 271 281 277 283 300 Total Assets 600 583 591 591 599 609 Current Liabilities 202 197 226 216 244 236 Long-Term Debt 95 87 62 81 76 90 Total Debt 172 171 168 181 213 200 Current Ratio 1.45 1.38 1.24 1.28 1.16 1.27 Quick Ratio 0.88 0.78 0.82 0.89 0.83 0.88 EBIT / Interest 5.7 1.9 10.0 7.6 5.0 10.9 Total Assets/Equity 2.0 2.0 2.2 2.3 2.4 2.4 L-T Debt % Total Capitalization 24.2 22.9 18.7 23.6 23.5 26.0 Inventory Turnover 6.8 7.4 8.1 8.9 8.3 8.3 Accounts Receivable Turnover 9.0 9.7 9.7 9.9 9.4 9.0 Total Asset Turnover 1.7 1.6 1.6 1.6 1.5 1.6 Return on Assets 1.9 0.0 2.0 1.8 0.7 2.9 Return on Equity 3.9 0.0 4.5 4.2 1.7 7.0
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Nippon Meat Packers Inc. (2282) 1234.00 281,593 24.7 0.9 14.6 0.3 Tyson Foods, Inc. (TSN-US) 2,511.76 951,865 42.4 1.7 33.0 0.3 Itoham Foods Inc. (2284) 496.00 103,334 0.9 23.2 0.2 Maruha Group Inc. (1334) 196.00 70,503 40.4 1.6 6.1 0.1
Nippon Meat Packers Inc. (2282) Nippon Meat Packers Inc(NIPPON-HAM). The Group's principal activities are the production, marketing and distribution of fresh meat products, processed foods and delicatessen products. The operations are carried out through the following business divisions: Fresh meat and Other. The Fresh meat division deals with ham, sausages and fresh meat. It also provides marine foods and processed marine products; offers other food products, including dairy products, such as cheese, yogurt, and lactic probiotic beverages; and provides freeze-dried foods, such as soups, vermicelli, and collagen soups. In addition, Nippon Meat Packers markets health-food products through mail order and online sales. The company also operates in Australia and North America. In addition, it processes leather in Australia principally for exporting to China and Italy.
Aug 28 2007 MIRAE ASSET RESEARCH 66 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Nisshin Seifun Group Inc. (2002) 2002 6640961 Tokyo Common stock Current 52 Wk YTD Market 52 Wk Headqrters Chiyoda-Ku 101-8441 Tokyo Japan +81 3 5282 6610 Price Range PChg Val (M) Beta Web Site http://www.nisshin.com 1093.000 1322 - 1044 -11.0 276,893 0.60 Industry Agricultural Commodities/Milling (2225) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 9.0 % Insider Hldgs 33.1 % 21.9 1.0 9.8 0.7 1.6 Q2 2008 Earnings Release (Proje 09-Nov-2007 12:00AM (EST) EPS Estimates Relati ve Strength vs. Japan FY 1FY 2FY 3 3/08 3/09 3/10 100
Mean 46.91 49.00 50.03 95 High 47.37 51.50 53.70 Low 46.60 47.40 46.60 90 Exp EPS Chg -3.6 4.5 2.1 85 1 Mo Revision -1.9 -1.8 -0.1 80 3 Mo Revision -8.9 -8.2 -4.2 FY 1FY 2FY 3 75 Forward P/E 23.3 22.3 21.8 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Billions) 3/07 3/06 3/05 3/04 3/03 3/02 Net Sales 418 421 416 434 402 397 Revenue Growth (0.8) 1.2 (4.1) 7.9 1.3 (1.4) Cost of Goods Sold * 286 286 283 302 283 278 Gross Margin 31.7 32.1 31.9 30.4 29.7 29.9 Operating Income 19 22 23 22 18 16 Operating Margin 4.6 5.3 5.5 5.0 4.4 3.9 Interest Expense 0.2 0.2 0.2 0.3 0.3 0.3 Pretax Income 24 25 25 23 20 17 Tax Rate 39.0 38.0 37.6 41.9 42.0 41.9 Net Income before Extraordinary Items 12 14 14 12 11 9 Net Income Growth (9.1) (0.4) 17.5 9.5 13.3 (16.2) Net Margin 2.9 3.2 3.3 2.7 2.6 2.4 EPS excl Extraordinary Items 48.7 52.8 52.8 44.7 40.3 34.9 EPS Growth (7.8) 0.0 18.1 11.0 15.3 (14.8) Shares Outstanding 0.3 0.3 0.3 0.3 0.3 0.3 Dividends per Share 18 18 13 10 8 7 Payout Ratio 37.0 34.1 24.1 22.4 20.3 20.8 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Billions) & Ratios 3/07 3/06 3/05 3/04 3/03 3/02 Current Assets 179 173 170 158 147 154 Total Assets 406 397 369 356 312 337 Current Liabilities 67 65 67 64 59 71 Long-Term Debt 122223 Total Debt 9 9 10 11 10 14 Current Ratio 2.65 2.68 2.53 2.47 2.49 2.17 Quick Ratio 1.99 2.07 1.96 1.94 1.91 1.67 EBIT / Interest 133.8 157.9 128.2 88.3 73.1 58.1 Total Assets/Equity 1.5 1.5 1.5 1.5 1.5 1.6 L-T Debt % Total Capitalization 0.5 0.6 0.7 1.0 0.9 1.2 Inventory Turnover 6.8 7.3 7.8 8.9 8.1 8.3 Accounts Receivable Turnover 7.1 7.2 7.3 8.2 7.6 7.2 Total Asset Turnover 1.0 1.1 1.1 1.3 1.2 1.3 Return on Assets 3.1 3.5 3.8 3.5 3.3 3.0 Return on Equity 4.6 5.4 5.8 5.2 5.0 4.6
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Nisshin Seifun Group Inc. (2002) 1093.00 276,893 21.9 1.0 9.8 0.7 Nestlé S.A. (NESN-CH) 48,205.28 18,497,430 21.1 3.8 11.8 1.9 Ajinomoto Co., Inc. (2802) 1,381.00 894,322 25.4 1.5 14.4 0.8 Nippon Flour Mills Co., Ltd. (2001) 427.00 72,197 17.2 0.7 7.3 0.3
Nisshin Seifun Group Inc. (2002) Nisshin Seifun Group Incorporated. The Group's principal activities are the manufacture and sale of flour. The operations are carried out through the following divisions: Foods, Flour milling and Other. Foods include pre-mixed foods, frozen foods, processed food, pasta, pasta sauce, bread crumbs and batter mix. Flour includes wheat flour, wheat bran and germ-by-products. The company also engages in the manufacture and sale of health foods, active pharmaceutical ingredients, and pharmaceutical products, as well as pet food. In addition, it designs and manages manufacturing and processing facilities for grains, food materials and chemicals, and the sale of powder processing related equipment. Further, the company provides a range of manufactured goods to industry, including screen-printing materials, mesh products for industrial use, electronic parts, plastic molding, and insect nets. Nisshin Seifun Group operates primarily in Japan, China, Thailand, Indonesia, Singapore, the United States, and Canada.
Aug 28 2007 MIRAE ASSET RESEARCH 67 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
PepsiCo Inc. (PEP-US) PEP-US 713448108 2681511 NYSE Common stock Current 52 Wk YTD Market 52 Wk Headqrters Purchase New York USA +1 914 253-2000 Price Range PChg Val (M) Beta Web Site http://www.pepsico.com 67.910 70 - 61 8.6 109,728 0.46 Industry Beverages: Non-Alcoholic (2420) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 70.6 % Insider Hldgs 0.1 % 19.2 7.0 16.4 3.0 2.2 Q3 2007 Earnings Release (Proje 11-Oct-2007 12:00AM (EST) Ratios Relative Strength vs. S&P 500 Stock Index Latest 3 Yr Avg 5 Yr Avg 112 Gross Margin 54.7 54.8 54.3 110 EBITD Margin 22.3 22.4 22.9 108 106 Net Margin 16.1 14.3 13.9 104 R&D%Sales 1.0 1.0 1.0 102 100 ROA 18.3 15.9 15.4 98 ROE 38.1 33.4 34.2 96 Debt%Equity 18.4 26.8 25.9 94 Payout Ratio 34.7 37.3 34.9 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 35,137 32,562 29,261 26,971 25,112 26,935 Revenue Growth 7.9 11.3 8.5 7.4 (6.8) 31.8 Cost of Goods Sold * 15,924 14,326 13,553 12,524 11,635 10,919 Gross Margin 54.7 56.0 53.7 53.6 53.7 59.5 Operating Income 6,439 5,922 5,409 4,987 4,954 4,408 Operating Margin 18.3 18.2 18.5 18.5 19.7 16.4 Interest Expense 239 256 167 163 178 219 Pretax Income 6,373 5,825 5,166 4,669 4,588 3,869 Tax Rate 21.1 39.6 26.6 30.5 33.9 35.3 Net Income before Extraordinary Items 5,642 4,078 4,174 3,568 3,313 2,661 Net Income Growth 38.4 (2.3) 17.0 7.7 24.5 21.9 Net Margin 16.1 12.5 14.3 13.2 13.2 9.9 EPS excl Extraordinary Items 3.34 2.39 2.44 2.05 1.85 1.47 EPS Growth 39.7 (2.0) 19.0 10.8 25.9 (0.7) Shares Outstanding 1,638.0 1,656.0 1,679.0 1,705.0 1,722.0 1,756.0 Dividends per Share 1.16 1.01 0.85 0.63 0.60 0.58 Payout Ratio 34.7 42.3 34.8 30.7 32.2 39.1 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 9,130 10,454 8,639 6,930 6,413 5,853 Total Assets 29,930 31,727 27,987 25,327 23,474 21,695 Current Liabilities 6,860 9,406 6,752 6,415 6,052 4,998 Long-Term Debt 2,550 2,313 2,397 1,702 2,187 2,651 Total Debt 2,824 5,202 3,451 2,293 2,749 3,005 Current Ratio 1.33 1.11 1.28 1.08 1.06 1.17 Quick Ratio 1.05 0.93 1.05 0.86 0.84 0.91 EBIT / Interest 27.7 23.8 31.9 29.6 26.8 18.7 Total Assets/Equity 1.9 2.2 2.1 2.1 2.5 2.5 L-T Debt % Total Capitalization 14.2 14.0 15.1 12.5 19.1 23.4 Inventory Turnover 8.8 8.9 9.2 9.1 8.8 9.9 Accounts Receivable Turnover 10.1 10.4 10.0 10.1 10.7 13.7 Total Asset Turnover 1.1 1.1 1.1 1.1 1.1 1.3 Return on Assets 18.3 13.7 15.7 14.6 14.7 13.3 Return on Equity 38.1 29.4 32.9 33.7 36.9 33.4
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales PepsiCo Inc. (PEP-US) 67.91 109,728 19.2 7.0 16.4 3.0 The Coca-Cola Company (KO-US) 53.98 124,887 24.0 6.6 19.0 4.8 Kraft Foods Inc. (KFT-US) 32.10 50,612 18.9 1.8 12.0 1.4 Cadbury Schweppes plc (CBRY-GB) 11.33 23,837 41.9 3.1 13.2 1.9
PepsiCo Inc. (PEP-US) Pepsico Inc.. The Group's principal activities are to manufacture market and sell salty, sweet and grain-based snacks, carbonated and non-carbonated beverages and foods. The Group operates in four divisions: Frito-Lay North America manufactures markets and sells branded snacks, which includes Lay's potato chips, Doritos flavored tortilla chips and Cheetos cheese flavored snacks. PepsiCo Beverages North America manufactures beverage concentrates, fountain syrups and finished goods for Pepsi, Diet Pepsi, Pepsi One, Mountain Dew, Mug etc. PepsiCo International manufactures a variety of salty and sweet snack brands including Sabritas, Gamesa and Alegro. The company markets Frito-Lay brands on a global level, and introduces unique products for local tastes. Quaker Foods North America manufactures, markets and sells cereals, rice, pasta and other branded products, which includes Quaker oatmeal, Cap'n Crunch and Life ready-to-eat cereals, Rice-A-Roni, etc. The Group operates in the United States, the United Kingdom, France, Australia, Germany, Netherlands, Argentina and Asia Pacific. In 2006, Pepsi acquired IZZE beverage company and New Zealand snack company Bluebird Foods. In August 2007, PepsiAmericas, Inc. and PepsiCo announced that they completed the joint purchase of 80 percent of Sandora, LLC, the leading juice company in Ukraine.
Aug 28 2007 MIRAE ASSET RESEARCH 68 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Japan Tobacco Inc. (2914) 2914 6474535 Tokyo Common stock Current 52 Wk YTD Market 52 Wk Headqrters Minato-Ku 105-8422 Tokyo Japan +81 3 3582 3111 Price (000) Range (000) PChg Val (M) Beta Web Site http://www.jti.co.jp 602.000 654 - 434 4.7 5,767,210 0.43 Industry Tobacco (2430) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 16.0 % Insider Hldgs 56.3 % 29.0 2.8 16.3 1.2 0.7 FY 2007 Earnings Call 10-Aug-2007 12:00AM (EST) EPS Estimates Relati ve Strength vs. Japan FY 1FY 2FY 3 160 3/08 3/09 3/10 150 Mean 27,600.11 25,178.76 29,394.63 140 High 29,616.00 39,758.00 44,466.00 130 Low 25,730.00 20,636.10 25,406.30 120 Exp EPS Chg 25.4 -8.8 16.7 110 1 Mo Revision -0.4 3.2 4.7 100 3 Mo Revision 17.8 11.4 10.4 90 FY 1FY 2FY 3 80 Forward P/E 21.8 23.9 20.5 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Billions) 3/07 3/06 3/05 3/04 3/03 3/02 Net Sales 4,769 4,638 4,665 4,625 4,492 4,544 Revenue Growth 2.8 (0.6) 0.9 3.0 (1.1) 0.9 Cost of Goods Sold * 3,902 3,788 3,769 3,747 3,626 3,681 Gross Margin 18.2 18.3 19.2 19.0 19.3 19.0 Operating Income 332 307 272 228 189 164 Operating Margin 7.0 6.6 5.8 4.9 4.2 3.6 Interest Expense 6.9 5.8 5.1 8.1 8.6 10.3 Pretax Income 337 301 101 (8) 142 98 Tax Rate 36.0 31.5 31.2 63.3 43.4 57.7 Net Income before Extraordinary Items 211 202 63 (8) 75 37 Net Income Growth 4.6 222.0 (110.1) 104.3 (15.6) Net Margin 4.4 4.3 1.3 (0.2) 1.7 0.8 EPS excl Extraordinary Items 22,001 21,017 6,418 (793) 7,506 3,685 EPS Growth 4.7 227.5 (110.6) 103.7 (15.6) Shares Outstanding 0.0 0.0 0.0 0.0 0.0 0.0 Dividends per Share 4,000 3,200 2,400 2,000 2,000 1,600 Payout Ratio 18.2 15.2 37.4 (252.1) 26.6 43.4 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Billions) & Ratios 3/07 3/06 3/05 3/04 3/03 3/02 Current Assets 1,841 1,608 1,504 1,478 1,346 1,302 Total Assets 3,289 2,934 2,830 2,908 2,893 2,992 Current Liabilities 813 626 742 757 595 663 Long-Term Debt 155 165 185 208 348 400 Total Debt 219 217 231 381 424 512 Current Ratio 2.26 2.57 2.03 1.95 2.26 1.96 Quick Ratio 1.75 1.92 1.44 1.35 1.44 1.17 EBIT / Interest 49.6 53.1 20.7 0.1 17.7 10.6 Total Assets/Equity 1.7 1.7 1.9 1.9 1.8 1.9 L-T Debt % Total Capitalization 7.3 8.6 11.0 12.1 17.7 19.9 Inventory Turnover 9.5 9.0 8.5 7.9 7.1 7.1 Accounts Receivable Turnover 34.0 36.2 37.3 36.0 34.5 38.0 Total Asset Turnover 1.5 1.6 1.6 1.6 1.5 1.5 Return on Assets 6.8 7.0 2.2 (0.3) 2.6 1.2 Return on Equity 11.3 12.4 4.2 (0.5) 4.7 2.4
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Japan Tobacco Inc. (2914) 602000.00 5,767,210 29.0 2.8 16.3 1.2 Altria Group, Inc. (MO-US) 7,980.64 16,800,914 16.8 8.9 9.9 1.6 The Coca-Cola Company (KO-US) 6,277.06 14,522,464 24.0 6.6 19.0 4.8 British American Tobacco p.l.c. (BATS-GB) 3,825.11 7,801,558 17.0 5.3 15.5 3.5
Japan Tobacco Inc. (2914) Japan Tobacco Incorporated. The Group's principal activities are the manufacture, sale and import of tobacco. It manufactures cigarette brands including Camel, Mild Seven, Salem and Winston. The Group is also involved in the manufacture of soft drinks and processed foods. The operations are carried out through the following divisions: Domestic tobacco; International tobacco; Pharmaceuticals, Foods and Others. The Tobacco division is involved in tobacco products. The Pharmaceutical division includes medicine. The Foods division includes beverages and processed foods. The Other division is involved in real estate, and engineering. Japan Tobacco icompleted the largest ever foreign takeover in Japanese history through acquisition of Gallaher Group plc in April 2007.
Aug 28 2007 MIRAE ASSET RESEARCH 69 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Sara Lee Corp. (SLE-US) SLE-US 803111103 2217109 NYSE Common stock Current 52 Wk YTD Market 52 Wk Headqrters Downers Grove Illinois USA +1 630 598-6000 Price Range PChg Val (M) Beta Web Site http://www.saralee.com 16.660 18 - 14 -2.2 12,238 0.89 Industry Food: Major Diversified (2405) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 71.3 % Insider Hldgs 0.3 % 29.2 4.7 9.3 1.0 2.4 Q1 2008 Earnings Release (Proje 08-Nov-2007 12:00AM (EST) Ratios Relative Strength vs. S&P 500 Stock Index Latest 3 Yr Avg 5 Yr Avg 98 Gross Margin 38.5 37.3 38.0 96 94 EBITD Margin 6.9 10.2 11.2 92 Net Margin 3.5 3.3 4.6 90 88 R&D%Sales 86 ROA 4.0 6.3 84 82 ROE 20.0 37.1 80 Debt%Equity 202.6 214.8 78
Payout Ratio 173.1 110.4 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 6/07 6/06 6/05 6/04 6/03 6/02 Net Sales 12,278 15,944 19,254 19,566 18,291 17,628 Revenue Growth (23.0) (17.2) (1.6) 7.0 3.8 (0.7) Cost of Goods Sold * 7,552 10,019 12,291 12,012 11,052 10,820 Gross Margin 38.5 37.2 36.2 38.6 39.6 38.6 Operating Income 850 1,244 1,461 1,673 1,690 1,596 Operating Margin 6.9 7.8 7.6 8.6 9.2 9.1 Interest Expense 265.0 308.0 290.0 271.0 276.0 304.0 Pretax Income 419 683 934 1542 1503 1218 Tax Rate (1.7) 40.0 21.7 17.5 17.5 14.4 Net Income before Extraordinary Items 426 410 731 1272 1221 1010 Net Income Growth 3.9 (43.9) (42.5) 4.2 20.9 (37.0) Net Margin 3.5 2.6 3.8 6.5 6.7 5.7 EPS excl Extraordinary Items 01212 EPS Growth (48.2) (68.2) 27.5 (10.4) (21.4) Shares Outstanding 761.0 785.9 793.9 777.3 784.7 Dividends per Share 11111 Payout Ratio 205.2 141.1 43.2 52.0 39.3 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 6/07 6/06 6/05 6/04 6/03 6/02 Current Assets 6,774 5,811 5,746 5,953 4,986 Total Assets 14,431 14,102 14,608 15,084 13,753 Current Liabilities 6,277 4,968 5,423 5,199 5,463 Long-Term Debt 3,807 4,115 4,171 5,157 4,326 Total Debt 5,959 4,754 5,295 6,236 5,515 Current Ratio 1.08 1.17 1.06 1.15 0.91 Quick Ratio 0.74 0.63 0.55 0.62 0.45 EBIT / Interest 2.6 3.2 4.2 6.7 6.4 5.0 Total Assets/Equity 5.9 4.8 5.0 6.6 7.0 L-T Debt % Total Capitalization 60.9 58.3 58.6 69.4 68.7 Inventory Turnover 4.1 4.5 4.4 4.2 4.3 Accounts Receivable Turnover 8.4 9.7 10.1 9.7 10.5 Total Asset Turnover 1.1 1.3 1.3 1.3 1.5 Return on Assets 2.9 5.1 8.6 8.5 8.4 Return on Equity 15.2 24.8 48.7 57.6 60.7
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Sara Lee Corp. (SLE-US) 16.66 12,238 29.2 4.7 9.3 1.0 Kraft Foods Inc. (KFT-US) 32.10 50,612 18.9 1.8 12.0 1.4 Tyson Foods, Inc. (TSN-US) 21.60 8,186 42.4 1.7 33.0 0.3 Interstate Bakeries Corporation (IBCIQ-US) 1.20 66 0.0
Sara Lee Corp. (SLE-US) Sara Lee Corporation. The main businesses are Sara Lee Food & Beverage, Sara Lee Foodservice and Sara Lee International. The Group's principal activity is to manufacture and market food and beverage, branded apparel and household products. The Group operates through five segments: Meats, Bakery, Beverage, Household Products and Branded apparel. The products and services include fresh and frozen baked goods, processed meats, coffee and tea, beverage systems, intimate apparel, underwear, activewear, legwear, sportswear and other apparel, personal, household and shoe care products. The brand names include Ball Park, Hillshire Farm, Jimmy Dean, Sara Lee, Earth Grains, IronKids, Hanes, Playtex, Just My Size, Lovable, Champion, Pretty Polly, Elbeo, Bellinda and Philippe Matignon. The company markets and sells its products primarily to supermarkets, distributors, restaurants, hospitals, other large institutions, and warehouse clubs through its direct sales force, independent wholesalers, and outside brokers. The Group has operations in 58 countries and markets products in nearly 200 nations. 2006 featured the divestiture of Sara Lee’s European meats and European branded apparel businesses. The corporation spun-off to its shareholders the Branded Apparel, Americas/Asia, business, into a separate, publicly traded company called Hanesbrands Inc. In addition to the monetary benefits, the company is now tightly focused on its core businesses -- food, beverage, and household and body care.
Aug 28 2007 MIRAE ASSET RESEARCH 70 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Tingyi (Cayman Islands) Holding Corp. (322-HK) 322-HK 6903556 Hong Kong Common stock Current 52 Wk YTD Market 52 Wk Headqrters Hong Kong Price Range PChg Val (M) Beta Web Site http://www.tingyi.com 9.450 10 - 4 24.3 52,813 1.21 Industry Food: Specialty/Candy (2410) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 4.6 % Insider Hldgs 74.9 % 38.2 7.5 19.1 2.5 2.0 Interim 2007 Earnings Release 20-Aug-2007 12:00AM (EST) EPS Estimates Relati ve Strength vs. Hong Kong FY 1FY 2FY 3 260 12/07 12/08 12/09 240 Mean 0.25 0.31 0.39 220 High 0.28 0.37 0.50 200 Low 0.18 0.27 0.31 180 Exp EPS Chg 18.5 25.0 25.0 160 1 Mo Revision 6.7 0.0 0.0 140 3 Mo Revision 6.7 0.0 25.0 120 FY 1FY 2FY 3 100
Forward P/E 37.8 30.2 24.2 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 18,116 14,352 11,425 9,816 8,583 7,367 Revenue Growth 26.2 25.6 16.4 14.4 16.5 28.6 Cost of Goods Sold * 12,285 9,856 8,274 7,081 5,675 4,890 Gross Margin 32.2 31.3 27.6 27.9 33.9 33.6 Operating Income 1,580 1,270 61 312 704 615 Operating Margin 8.7 8.8 0.5 3.2 8.2 8.4 Interest Expense 84.3 66.9 115.9 161.6 206.4 184.5 Pretax Income 1786 1403 2314 309 766 568 Tax Rate 10.4 9.7 2.9 19.8 6.3 12.4 Net Income before Extraordinary Items 1157 961 2231 279 709 471 Net Income Growth 20.5 (56.9) 700.0 (60.7) 50.7 50.6 Net Margin 6.4 6.7 19.5 2.8 8.3 6.4 EPS excl Extraordinary Items 000000 EPS Growth 20.3 (57.0) 701.8 (60.8) 50.9 50.1 Shares Outstanding 5,588.7 5,588.7 5,588.7 5,588.7 5,588.7 5,588.7 Dividends per Share 000000 Payout Ratio 92.6 104.7 22.3 176.1 57.0 75.0 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 3,719 3,238 2,930 2,579 2,536 2,780 Total Assets 14,766 12,294 11,118 10,224 9,224 8,918 Current Liabilities 5,411 3,760 3,739 3,319 2,512 3,142 Long-Term Debt 220 255 106 2,095 1,984 1,379 Total Debt 2,086 1,183 1,555 3,376 2,833 3,031 Current Ratio 0.69 0.86 0.78 0.78 1.01 0.88 Quick Ratio 0.53 0.65 0.58 0.54 0.75 0.71 EBIT / Interest 22.2 22.0 21.0 2.9 4.7 4.1 Total Assets/Equity 2.1 1.8 1.8 2.3 2.0 2.1 L-T Debt % Total Capitalization 3.0 3.6 1.7 32.1 30.2 24.6 Inventory Turnover 14.8 12.8 10.9 9.9 9.4 8.6 Accounts Receivable Turnover 14.3 12.6 10.8 9.1 8.7 8.8 Total Asset Turnover 1.3 1.2 1.1 1.0 0.9 0.9 Return on Assets 8.6 8.2 20.9 2.9 7.8 5.5 Return on Equity 16.7 14.8 41.9 6.2 16.1 11.8
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Tingyi (Cayman Islands) Holding Corp. (322-HK) 9.45 52,813 38.2 7.5 19.1 2.5 Uni-President Enterprises Corp. (1216-TW) 7.92 28,149 35.8 2.5 5.8 0.5 First Pacific Company Limited (142-HK) 5.15 16,507 12.9 3.6 6.9 0.9 New Dragon Asia Corp. (NWD-US) 7.97 429 1.1 6.2 1.0
Tingyi (Cayman Islands) Holding Corp. (322-HK) Tingyi (Cayman Islands) Holding Corporation. The Group's principal activities are manufacture and sale of instant noodles, beverages and baked products. Other activities include manufacture of packaging materials, dehydrated vegetables and seasoning flavors, provision of installation and maintenance services of machinery, engineering related ultancy and research services, property management and related consultancy services, property development, logistics services and investment holding. Operations are carried out in he British Virgin Islands, Cayman Islands and the People's Republic of China. The Group markets their products through the Mr Kon brand name which is distributed throughout the People's Republic of China.
Aug 28 2007 MIRAE ASSET RESEARCH 71 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Uni-President Enterprises Corp. (1216-TW) 1216-TW 6700393 Taipei Common stock Current 52 Wk YTD Market 52 Wk Headqrters Yungkang City Tainan County Taiwan +886 6 253 2121 Price Range PChg Val (M) Beta Web Site http://www.uni-president.com.tw 33.400 36 - 23 8.9 118,749 1.44 Industry Food: Major Diversified (2405) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 15.9 % Insider Hldgs 13.9 % 35.8 2.5 5.8 0.5 1.7 Interim 2007 Earnings Release (P 31-Aug-2007 12:00AM EPS Estimates Relative Strength vs. Taiwan FY 1FY 2FY 3 12/07 12/08 12/09 200 Mean 2.07 1.66 1.92 180 High 2.07 1.66 1.92 Low 2.07 1.66 1.92 160 Exp EPS Chg 102.6 -19.9 15.8 140 1 Mo Revision -0.1 0.2 0.0 120 3 Mo Revision 36.8 -9.1 FY 1FY 2FY 3 100
Forward P/E 16.2 20.2 17.4 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Billions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 249 233 68 62 57 55 Revenue Growth 6.9 240.9 10.1 8.1 4.4 (14.0) Cost of Goods Sold * 193 183 53 46 45 43 Gross Margin 22.4 21.5 22.9 25.0 21.0 21.1 Operating Income (1) (2) 00(3) (2) Operating Margin (0.5) (0.7) 0.5 0.4 (4.8) (3.9) Interest Expense 3.9 2.9 1.1 1.3 1.7 2.2 Pretax Income 863313 Tax Rate 29.0 29.8 9.0 2.5 19.5 3.3 Net Income before Extraordinary Items323323 Net Income Growth 58.4 (20.1) (11.1) 93.7 (49.7) (11.0) Net Margin 1.3 0.9 3.8 4.7 2.6 5.5 EPS excl Extraordinary Items 111101 EPS Growth 59.7 (19.5) (10.5) 90.1 (48.2) (10.8) Shares Outstanding 3.6 3.6 3.6 3.6 3.6 3.6 Dividends per Share 110101 Payout Ratio 64.2 104.8 46.8 69.8 77.4 68.7 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Billions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 73 65 21 22 18 21 Total Assets 238 222 124 121 103 107 Current Liabilities 95 78 29 27 24 24 Long-Term Debt 59 64 41 41 29 33 Total Debt 114 111 63 59 47 49 Current Ratio 0.77 0.83 0.73 0.81 0.74 0.86 Quick Ratio 0.53 0.56 0.53 0.60 0.55 0.69 EBIT / Interest 3.1 2.9 3.4 3.0 1.8 2.3 Total Assets/Equity 5.1 5.1 3.0 2.9 2.5 2.6 L-T Debt % Total Capitalization 55.8 59.6 49.9 49.2 41.6 44.4 Inventory Turnover 9.0 13.8 9.2 9.1 10.5 9.0 Accounts Receivable Turnover 13.1 18.4 8.7 8.4 8.3 7.7 Total Asset Turnover 1.1 1.3 0.6 0.6 0.5 0.5 Return on Assets 1.4 1.2 2.1 2.6 1.4 2.9 Return on Equity 7.3 4.9 6.3 7.1 3.7 7.5
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Uni-President Enterprises Corp. (1216-TW) 33.40 118,749 35.8 2.5 5.8 0.5 Nestlé S.A. (NESN-CH) 13,658.82 5,241,190 21.1 3.8 11.8 1.9 Sumitomo Corporation (8053) 554.23 684,739 11.5 1.6 9.5 0.8 FamilyMart Co., Ltd. (8028) 850.04 78,541 18.0 1.7 10.2 0.9
Uni-President Enterprises Corp. (1216-TW) Uni President Enterprises Corporation. The company, through its subsidiaries, engages in the production and marketing of various types of food and health products. It operates in five groups: Provisions, Instant Food, Dairy and Beverage, General Foods, and Consumer Health. It also provides investment and recreation services. Other activities include procurement and distribution of commodity and vending machines and franchising bakery chain store. The company primarily markets its products in Taiwan, China, Southeast Asia, and other regions.
Aug 28 2007 MIRAE ASSET RESEARCH 72 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Yakult Honsha Co. Ltd. (2267) 2267 6985112 Tokyo Common stock Current 52 Wk YTD Market 52 Wk Headqrters Minato-Ku 105-8660 Tokyo Japan +81 3 3574 8960 Price Range PChg Val (M) Beta Web Site http://www.yakult.co.jp 2710.000 3810 - 2590 -20.8 471,990 1.19 Industry Food: Meat/Fish/Dairy (2415) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 6.2 % Insider Hldgs 42.5 % 34.8 2.0 17.3 1.7 0.7
EPS Estimates Relative Strength vs. Japan FY 1FY 2FY 3 115 3/08 3/09 3/10 110 Mean 92.31 96.26 108.23 105 High 97.60 109.10 135.90 100 Low 82.70 85.00 92.40 95 Exp EPS Chg 8.7 4.3 12.4 90 1 Mo Revision 5.9 0.8 -0.5 85 3 Mo Revision -11.5 -15.0 -14.8 FY 1FY 2FY 3 80 Forward P/E 29.4 28.2 25.0 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Billions) 3/07 3/06 3/05 3/04 3/03 3/02 Net Sales 273.1 267.7 247.5 238.8 242.7 229.6 Revenue Growth 2.0 8.2 3.6 (1.6) 5.7 2.1 Cost of Goods Sold * 128.7 126.2 113.4 111.1 109.1 112.9 Gross Margin 52.9 52.9 54.2 53.5 55.1 50.8 Operating Income 23.9 21.8 18.1 16.4 21.6 13.1 Operating Margin 8.7 8.1 7.3 6.9 8.9 5.7 Interest Expense 0.1 0.2 0.2 0.3 0.5 0.5 Pretax Income 31.7 29.3 25.1 25.6 25.9 17.7 Tax Rate 41.6 41.4 38.0 35.5 37.4 35.5 Net Income before Extraordinary Items 14.8 14.4 14.1 15.1 14.4 11.1 Net Income Growth 2.5 2.4 (6.5) 4.9 29.5 5.4 Net Margin 5.4 5.4 5.7 6.3 5.9 4.8 EPS excl Extraordinary Items 84.93 81.67 79.67 85.27 80.88 63.20 EPS Growth 4.0 2.5 (6.6) 5.4 28.0 5.3 Shares Outstanding 0.2 0.2 0.2 0.2 0.2 0.2 Dividends per Share 15.00 16.00 17.50 15.00 15.00 15.00 Payout Ratio 17.7 19.6 22.0 17.6 18.5 23.7 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Billions) & Ratios 3/07 3/06 3/05 3/04 3/03 3/02 Current Assets 165.6 155.8 142.9 149.7 147.6 137.6 Total Assets 350.2 323.0 282.9 272.8 262.0 251.6 Current Liabilities 67.8 65.2 62.2 65.0 61.7 65.0 Long-Term Debt 1.7 1.6 1.7 4.5 5.2 5.6 Total Debt 10.7 10.5 14.0 17.2 18.3 20.9 Current Ratio 2.44 2.39 2.30 2.30 2.39 2.12 Quick Ratio 1.99 1.95 1.86 1.89 2.02 1.77 EBIT / Interest 260.6 181.0 110.4 79.3 56.4 36.3 Total Assets/Equity 1.5 1.5 1.4 1.5 1.5 1.5 L-T Debt % Total Capitalization 0.7 0.7 0.8 2.4 2.9 3.2 Inventory Turnover 4.3 4.5 4.2 4.5 4.8 6.1 Accounts Receivable Turnover 5.9 6.4 6.5 6.5 6.6 6.2 Total Asset Turnover 0.8 0.9 0.9 0.9 0.9 1.0 Return on Assets 4.4 4.8 5.1 5.6 5.6 4.7 Return on Equity 6.5 6.9 7.4 8.4 8.4 6.8
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Yakult Honsha Co. Ltd. (2267) 2710.00 471,990 34.8 2.0 17.3 1.7
Yakult Honsha Co. Ltd. (2267) Yakult Honsha Co Ltd. The Group's principal activities are to manufacture and sell drinks and foods. The Group is also involved in the manufacture and sale of pharmaceutical products. The operations are carried out through the following divisions: Beverages and Foods, Pharmaceuticals and Others. The Beverages and Food products division deals in fermented milk drinks, yogurts, yogurt drinks, beverages and noodles. The Pharmaceuticals division is involved in the production and sale of anticancer drugs and other pharmaceutical products. Its other businesses comprise management of the Tokyo Yakult Swallows Baseball Club, a league professional baseball team in Japan; and cosmetics, including color-free products, facial wash, skin lotions, AC whitening essence, and whitening lotions. The company operates in Japan, the Americas, Asia, Oceania, and Europe. In 2006, a decision was made to enter the Vietnamese market in alliance with Danone Groupe.
Aug 28 2007 MIRAE ASSET RESEARCH 73 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
Wilmar International Ltd. (F34-SG) F34-SG B17KC69 Singapore Common stock Current 52 Wk YTD Market 52 Wk Headqrters Singapore Price Range PChg Val (M) Beta Web Site http://www.ezyhealth.com 3.080 4 - 1 26.7 9,570 1.14 Industry Agricultural Commodities/Milling (2225) P/E P/Book P/CF P/Sales Div Yield Inst Hldgs 1.5 % Insider Hldgs 57.9 % #N/A 8.7 28.2 0.9 0.4
EPS Estimates Relative Strength vs. Singapore FY 1FY 2FY 3 12/07 12/08 12/09 600 Mean 0.12 0.17 0.19 500 High 0.15 0.18 0.22 400 Low 0.11 0.15 0.16 300 Exp EPS Chg 75.4 37.2 13.9 1 Mo Revision -6.9 12.2 -12.1 200 3 Mo Revision -3.2 15.3 -2.6 100 FY 1FY 2FY 3 0 Forward P/E 25.5 18.6 16.3 9/05 12/05 3/06 6/06 9/06 12/06 3/07 6/07
Income Statement Summary (Millions) 12/06 12/05 12/04 12/03 12/02 12/01 Net Sales 8,379 17 15 13 11 9 Revenue Growth 49242.5 15.3 9.3 27.2 22.0 163.2 Cost of Goods Sold * 7,61065543 Gross Margin 9.2 62.8 68.0 66.2 62.7 63.1 Operating Income 262 (7) (1) (12) (2) (4) Operating Margin 3.1 (40.5) (7.7) (87.1) (23.5) (45.2) Interest Expense 109.2 0.1 0.1 0.1 0.0 0.2 Pretax Income 214 (7) (1) (12) (2) (4) Tax Rate 21.5 (0.4) (5.0) (0.6) 1.6 (0.1) Net Income before Extraordinary Items 165 (7) (1) (12) (2) (4) Net Income Growth (777.5) 93.6 (418.3) 39.2 57.8 Net Margin 2.0 (39.3) (5.2) (87.6) (21.5) (43.1) EPS excl Extraordinary Items 0.1 (0.3) (0.0) (0.5) (0.1) (0.2) EPS Growth (779.3) 93.7 (406.6) 39.7 68.3 Shares Outstanding 2,532.8 26.2 26.2 26.2 25.2 24.8 Dividends per Share 000000 Payout Ratio 18.2 0.0 0.0 0.0 0.0 0.0 * Depreciation & Amortization Expense is included in Cost of Goods Sold Balance Sheet (Millions) & Ratios 12/06 12/05 12/04 12/03 12/02 12/01 Current Assets 1,632 13 16 17 19 24 Total Assets 2,820 14 22 24 30 34 Current Liabilities 1,70488965 Long-Term Debt 6600000 Total Debt 1,16500000 Current Ratio 0.96 1.55 1.87 1.92 3.08 5.20 Quick Ratio 0.60 1.46 1.81 1.84 3.02 5.13 EBIT / Interest 3.0 (47.2) (7.6) (193.9) (90.8) (21.5) Total Assets/Equity 3.1 2.9 1.9 1.9 1.3 1.2 L-T Debt % Total Capitalization 6.9 2.3 1.4 0.4 0.2 0.0 Inventory Turnover 24.7 10.1 8.2 8.8 11.0 Accounts Receivable Turnover 17.6 2.2 1.7 1.7 1.7 2.4 Total Asset Turnover 5.9 0.9 0.6 0.5 0.3 0.2 Return on Assets 11.7 (36.7) (3.3) (44.0) (7.1) (10.4) Return on Equity 36.7 (80.5) (6.3) (65.6) (8.6) (12.1)
Key Competitors Price Mkt Val (M) LTM P/E P/Book P/CF P/Sales Wilmar International Ltd. (F34-SG) 3.08 9,570 8.7 28.2 0.9
Wilmar International Ltd. (F34-SG) Wilmar International Limited Formerly known as Ezyhealth Asia Pacific Limited. The Group's principal activities are merchandising and refinery, plantation and palm oil mills. Other activities includes in the ship-owning and chartering operations; trading of oleo chemical and biodiesel; distribution of frying oil, margarine, and shortening; development of industrial estate; coal business and trading; processing of cocoa butter and powder; manufacture and sale of fertilizers; and rental of storage facilities. It serves food manufacturing, cosmetics, and pharmaceutical industries. The company sells its products in India, the People of Republic of China, South East Asia, and internationally. Its customers include refiners, processors, wholesalers, and retailers. The company markets its edible oil under Sania and Fortune brand names.
Aug 28 2007 MIRAE ASSET RESEARCH 74 The Recipe for F&B: valuation Analyst 한국희 3774-1474 / Analyst 손예희 3774-1681
투자의견
업종별 투자의견 종목별 투자의견 (6개월 기준) Attractive : 현 업종지수대비 +10% 초과 BUY : 현주가 대비 목표주가 +20% 초과 Neutral : 현 업종지수대비 ±10% 이내 Hold : 현주가 대비 목표주가 ±10%이내 Cautious : 현 업종지수 대비 –10%초과 Reduce : 현주가 대비 목표주가 –20%초과 ※ 업종별 투자의견의 용어를 재정리 함 단, 업종 투자의견에 의한 ±10%내의 조정치 감안 가능 Overweight→ Attractive / Underweight → Cautious로 2005년 8월 3일부터 변경함
Earnings Quality Score Earnings Quality Score = 0.70*(Earnings Stability) + 0.15*(Earnings Certainty) + 0.15*(Earnings Forecast Accuracy)
1. Historical Earnings Stability - 최근 5년간 분기 순이익 성장률(YoY)의 변동성을 100분위 지표로 변환. - 변동성은 outlier에 의한 왜곡현상을 최소화하기 위해 표준편차(SD) 대신 MAD(Median Absolute Deviation)로 산정. - 순이익 분기 성장률(YoY) 변동성이 낮을수록 동 지표값이 높음.
2. Consensus Forecast Certainty - 12개월 예상 EPS(컨센서스 기준) 추정치에 대한 애널리스트간 견해차를 100분위 지표로 변환. - 견해차는 12개월 예상 EPS의 '표준편차 / 평균'으로 산정. - 견해차가 작을수록 동 지표값이 높음.
3. Consensus Forecast Accuracy - 최근 3년간의 EPS surprise(=[연말 실제치 - 연초 추정치]/연초 추정치)의 절대크기를 100분위 지표로 변환. - EPS surprise는 '(연말 실제치 - 연초 추정치)/연초 추정치'로 산정. - Surprise의 절대크기가 낮을수록 동 지표값이 높음.
* 참고사항 1) Consensus Forecast Certainty 및 Consensus Forecast Accuracy는 예상 EPS 컨센서스 추정치 수가 5개 이상인 기업만을 대상으로 하였음. 2) 각 지표를 산정할 수 없을 경우에는 평균인 50을 부여하였음.
Compliance Notice
본 자료는 투자자의 증권투자를 돕기 위하여 당사 고객에 한하여 배포되는 자료로서 어떠한 경우에도 복사되거나 대여될 수 없습니다. 본 조사자료에 수록된 내용은 당사 리서치센터가 신뢰할 만한 자료 및 정보로부터 얻어진 것이나 당사는 그 정확성이나 완전성을 보장할 수 없습니다. 따라서, 어떠한 경우에도 본 자료는 고객의 증권투자의 결과에 대한 법적 책임소재에 대한 증빙자료로 사용될 수 없습니다. 당사는 8월28일 현재 KT&G를 기초자산으로 하는 ELW발행 및 LP회사임을 알려드립니다. 동 자료는 기관투자가 또는 제3자에게 사전 제공한 사실이 없습니다. 자료에 게재된 내용들은 본인의 의견을 정확하게 반영하고 있으며, 외부의 부당한 압력이나 간섭 없이 작성되었음을 확인함. 작 성 자 : 한국희
담당자 보유주식수 1%이상 유가증권 계열사 자사주 종목 담당자 종류 수량 취득가 취득일 보유여부 발행관련 관계여부 취득부 해당사항없음
Aug 28 2007 MIRAE ASSET RESEARCH 75
