Wednesday, 18 July 2012
Guang Chong Berhad and JB Foods Limited
You may have read the article on Monday Straits Times that Guan Chong Berhad is seeking a dual listing on SGX. Interestingly, Guan Chong is related to JB Foods Limited through its patriarch. Guan Chong is currently the market leader that is mentioned in JB Foods Limited prospectus. Accordingly to CapitalIQ, Guan Chong is trading at 7.4x FY2012 PE. If we apply the same matrix to JB Foods Limited, JB Foods should have a fair market value of $0.45. An upside of 50%! The share price of Guan Chong over the last 5 years somewhat indicate that JB Foods Limited may have a good future ahead! Happy IPOing!