MAMEE targeting RM1 billion sales in five years’ time

KUCHING: With an extensive distribution network and advertising and promotion expenses spent, Mamee-Double Decker (M) Bhd (Mamee) has performed commendably well financially throughout the years and it is gearing up towards achieving a double digit revenue growth and targeting RM1 billion sales in five years’ time.

According to MIMB Investment Bank Bhd (MIMB Investment), due to its business nature, Mamee was in a net cash position and had also been enjoying strong operating cash flow. It held a cash hoard at RM46 million as at financial year 2009 (FY09). With this cash pile, the research house believed that Mamee could further enhance its product range.

The research house reported that Mamee had announced a dividend policy of paying out a minimum of 50 per cent of its net profit in the financial year 2010 (FY10) onwards. Based on its estimated FY10 earnings per share (EPS) of 33 sen, the dividend per share (DPS) is estimated at 16.4 sen, representing a yield of 5.6 per cent.

MIMB Investment pointed out that Mamee’s growth would be spurred by undertaking research and development (R&D) activities for new product development, enhancing local distribution, expanding overseas presence, implementing continuous marketing support and exploring potential mergers and acquisitions.

The research house liked Mamee for its strong brand name for its product range, especially for Mamee Monster, Mister Potato and Double Decker coupled with potential earnings visibility going forward.

Therefore, MIMB Investment had pegged Mamee’s share at RM3.22 per share.


-by Borneo Post