
Will new products supercharge Super Group’s earnings?
It aims to stimulate sales in a weak environment.
A gloomy retail environment seems to be a daunting challenge for Super Group, but it might have the right solution under its sleeve, as it rolls out its new Branded Consumer (BC) products in Singapore, Malaysia, and China.
According to analysts from Maybank Kim Eng, Super Group aims to follow up its BC products for the rest of its markets by 1H16, expecting to lift prices and margins over time.
Maybank Kim Eng says this strategy would work out well for the company, as retailers become eager to work with Super, which in turn would stimulate sales.
“Elsewhere, we believe Food Ingredients (FI) could be boosted by China’s incoming food policy emphasising supplier certification and the traceability of ingredients. As Super’s plants in China are fully certified to meet the new regulations, we expect them to benefit,” Maybank Kim Eng said.
For the long term, Maybank Kim Eng believes Super’s superb financials will allow it to explore new growth areas and reward shareholders.