{"id":329020,"date":"2024-08-18T23:35:46","date_gmt":"2024-08-18T15:35:46","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329020"},"modified":"2024-08-18T23:35:47","modified_gmt":"2024-08-18T15:35:47","slug":"stock-in-focus-monde-nissin-corp-monde-19-aug-2024-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-monde-nissin-corp-monde-19-aug-2024-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Monde Nissin Corp. (MONDE) – 19 Aug 2024 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>MONDE<\/td><\/tr>
Company Name<\/strong><\/td>Monde Nissin Corp.<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>19 Aug 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 12.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We reiterate our BUY rating on Monde Nissin Corp. (MONDE) and retain our target price (TP) of Php12.00 as we expect strong performance of its Asia-Pacific Branded Food & Beverage (APAC BFB) to continue given margin upside, seasonality and improving local macro environment. For its Meat Alternative Business (MAB), we are optimistic on how the UK retail market may bounce in the 2nd half (2H) 2024 as UK inflation is seen to decline along with key input costs. We forecast margins to improve for the remainder of the year as the company has already secured raw materials inventory for this year (wheat & palm oil).<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

Earnings recap<\/h3>\n\n\n\n

MONDE reported 1st half (1H) 2024 core net income of Php5.1 billion, up 45.5% year-on-year (y\/y) coming from a low base last year, above our estimates. Consolidated revenue grew 2.4% to Php40.1 billion backed by the 3.9% growth of its APAC BFB business while its Quorn business continued to struggle, posting a -4.2% growth y.y. Costs of goods sold decreased by 3.8% due to the lower input costs mainly wheat and palm oil. This equates to a 19% increase in core gross profit at Php13.9 billion while gross profit margin is at 35%. Core EBITDA also improved by 25.9% y\/y.<\/p>\n\n\n\n

MONDE enters RTD choco milk drink market<\/h3>\n\n\n\n

The company has entered the ready-to-drink (RTD) chocolate milk market after it launched in July 2024 the first chocolate milk drink in the PH with nata de coco, Monde Nuvi Chocolate Milk Drink with Nata de Coco. This move is co-branded product with Nuvi from Nutrifood (one of the largest dairy manufacturers in Vietnam) and is valued at Php9 billion.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>