This is the new investment item in my portfolio.
The main products of Power Root are instant premixed coffee and energy drink. From what we could observed in the hypermarket, I think it's fair enough to say that Alicafe series is now the top local brand in the premixed coffee market. Its Power Root series also had a significant market share in the energy drink segment.
Historical data of the company:
* FY ended 28-Feb each year.
Its performance had dropped significantly in FY2009. However, the company manage to recover from the economic crisis, and had shown a CAGR of more than 12% during FY2009~2012.
Segmental Data:
We can see that the company's performance in the past few years were partially boosted by the export market. Its export revenue had become more than doubled within two years time from FY2010~2012.
While I'm confident that Power Root could maintain its market share (with mild growth) in local market, I'm in opinion that its growth momentum in the export market will remain strong for the years to come.
Its dividend record:
In short, my reasons of investing in Power Root -- riding on its growth momentum (my estimation, 10~15% p.a.), at the same time receiving its high dividend.
The main products of Power Root are instant premixed coffee and energy drink. From what we could observed in the hypermarket, I think it's fair enough to say that Alicafe series is now the top local brand in the premixed coffee market. Its Power Root series also had a significant market share in the energy drink segment.
Historical data of the company:
| RM million | ||
| FY* | Revenue | PAT |
| 2007 | 154.0 | 34.7 |
| 2008 | 178.5 | 39.3 |
| 2009 | 138.1 | 9.8 |
| 2010 | 153.1 | 10.2 |
| 2011 | 184.8 | 12.2 |
| 2012 | 217.0 | 16.7 |
Its performance had dropped significantly in FY2009. However, the company manage to recover from the economic crisis, and had shown a CAGR of more than 12% during FY2009~2012.
Segmental Data:
| RM million | % | % | ||||
| FYE | Local | Export | Total | Local | Export | |
| 2008 | 159.4 | 19.0 | 178.5 | 89 | 11 | |
| 2009 | 118.9 | 19.2 | 138.1 | 86 | 14 | |
| 2010 | 133.7 | 19.4 | 153.1 | 87 | 13 | |
| 2011 | 155.0 | 29.8 | 184.8 | 84 | 16 | |
| 2012 | 170.8 | 46.2 | 217.0 | 79 | 21 | |
We can see that the company's performance in the past few years were partially boosted by the export market. Its export revenue had become more than doubled within two years time from FY2010~2012.
While I'm confident that Power Root could maintain its market share (with mild growth) in local market, I'm in opinion that its growth momentum in the export market will remain strong for the years to come.
Its dividend record:
- 2008： 5.0 sen.
- 2009： 4.0 sen.
- 2010： 6.0 sen.
- 2011： 4.0 sen.
In short, my reasons of investing in Power Root -- riding on its growth momentum (my estimation, 10~15% p.a.), at the same time receiving its high dividend.
