Vitasoy -- 345

it has been for some time since my previous posting in this blog.

The topic of today is some investment ideas around the share, 345 the Vita Soy, enjoy ^_^.

Vitasoy is a established local brand. It is one of the most famous local brands. It sells vitasoy, lemon tea, vita water, DoFu etc using an umbrella of a wide range of different brands.

Its trading PE is nearly 40 times, and its book to market value is about 8 times. Basing on these figures, 345 is expensive, super expensive.

I like this local brand a lot and i buy its products frequently. I have faith on it, So I keep an eye on it for some possible lower prices to buy in. I am a customer of 345 already. When will I become a shareholder in the near future?

Vitasoy has invested some monies in mainland China. Those are manufacturing factory facilities.

345 wishes to explore the mainland market as well.

In the first half of this FY, the net profits of 345 rose 40%. The company explained that the rise was partly resulted form the dropping raw materials costs,

As an unknown in the future, 345 can't rely on dropping material prices to support the profits, the raw material prices may rebound and squeeze the profit margin in the coming half of the FY, who knows!! In addition, the capital expenditure in the latter half 2015/16 will double that of the former half 2016.

However, the CFO told the media that the group had sold some non core assets to increase the cash level of the company. I believe it has no need to increase debt or to do share placing in the near future.

I will keep an eye on this company continuously, how about you?

Today, 345's market price is HKD 14.58.

Good share but too expensive.

You may also read other article about 345 in this blog. Just go to the directory and search.