I have been waiting for a long time for this IPO. Because I survived my college days eating instant noodles when I have no money to eat decent food. So there’s a lot of memories for me with the products of the company. Monde Nissin Corp, is the creator of Lucky Me! instant pancit canton.
But is the company a good investment knowing that they will IPO? Let’s find out.
About Monde Nissin Corporation (MNC)
Monde Nissin Corporation is the maker of Lucky Me! Instant pancit canton and instant noodles. They are the #1 in the market for instant noodles in the Philippines. They are also the maker of Sky Flakes, M.Y. San Graham and Fita, also #1 in their respective markets. They are the main distributor of Mama Sita’s oyster sauce which is also #1 in the market. And of course, Dutch Milk, #1 in the yogurt market.
They pretty much cornered any market they are in. Except for a few duds. Nevertheless, the company is well managed and it shows the quality of the company.
During the Covid-19 Pandemic, when most companies suffered, MNC sales rose because their products are needed as basic necessities.
Monde Nissin is a Great Company
No doubt that Monde Nissin is a great company as most of its products are in the top 1-3 of their respective markets in the Philippines. Not only is the company catering the Philippine markets, they are also venturing out in Asia Pacific and with their acquisition of Quorn, the UK.
Quorn, meat substitute
With people equating not eating meat as a sign of a healthy diet, Quorn is in a perfect position to take advantage of this trend. Quorn, MNC’s brand for meat substitute, is at the top in its market in the UK. They are also the one supplying fastfood brands in the Philippines in offering healthy plant based burger for example by KFC.
There is a growth potential for plant based meats and MNC would like to pursue that vision.
Is it a good investment?
The question is, would I buy it? Though the company is a really good one, the question is a really hard one too. I like this company, but I don’t think I would be able to buy it cheap because of its popularity. Should I just buy even if its expensive and just wait it out? What about the other opportunities if I use the money now?
This is a hard investment for me because its not a cheap company to buy. The last time I checked its at 31x PE. It may change depending on the price in the prospectus. Would I buy a PE of 31 company if I could just add to my PE of 4 with 12% dividends?
Though its a great company and there might be lots of people anticipating this, it might have a probability to be a great investment if more people are hyped up for this stock.
No doubt its a great company. But is it a great investment? I think, not yet…