Century Pacific Food

Valuation Methods:
1. Discounted Dividend= div PV of div

2. Discounted Cash Flow= cash flows PV of forecasted NI adjusted to become
cash flows
3. Relative Valuation= get the P/E forecast earnings, multiply to get P
*collect qualitative data and quantitative (forecast sales, etc. get growth rates) ->
properly getting the growth rates and getting the terminal value(research or find a
very close proxy)
*Complete the F/S -> PV all the cash flows -> get a price
Buy if >10% gain over 1 year ; sell otherwise
Century Pacific Food, Inc. (CNPF)
branded canned seafood, meat, dairy, mixes and OEM tuna export businesses
a subsidiary of Century Canning Corporation and is subsequently a member
of Century Canning Corporations Group of Companies (the Group).
Subsidiaries:
1. General Tuna Corporation- private-label OEM tuna export business
2. Snow Mountain Dairy Corporation- operates the dairy and mixes business
3. Allforward Warehousing, Inc (AWI)
Parent Company: Century Canning Corporation
Operating Segments:
1. canned and processed fish segment- largest business segment; tuna, sardine,
other fish, and seafood-based products
a. Century Tuna
b. 555
c. Blue Bay
d. Fresca
e. Lucky 7
2. canned meat
a. Argentina
b. Wow
c. Swift
3. dairy and mixes
a. Angel
b. Birch Tree
c. Kaffe de Oro
d. Home Pride
4. tuna export- produces private-label canned tuna, pouched tuna, and vacuumpacked frozen tuna loin products for overseas markets including North
America, Europe, Asia, Australia, and the Middle East
Key Risks:
1. fluctuations in prices or disruption in the supply of key raw materials
- changes in global or regional levels of supply and demand
- weather conditions
- customs and import duties
- government controls
a. primary tuna production operations affected by availability and price
of tuna
- tuna prices have increased in recent years from US$1526 per ton in
2011 to US$1954 per ton in 2012 due to government regulations
b. prices of other raw materials- tin cans, meat and milk powder
fluctuated from time to time
*no assurance that increases can be passed on to consumers
2. CNPFs sales growth depends on successful introduction of new products and
new product extensions, which is subject to consumer preference and other
market factors at the time of introduction.
3. Actual or alleged contamination or deterioration of, or safety concerns about,
CNPFs food products or similar products produced by third parties could give
rise to product liability claims and harm CNPFs reputation.
4. Competition in CNPFs businesses may adversely affect its financial condition
and results of operations.
*Favorable materials prices (specifically tuna fish), higher sales volume and
increased selling prices for branded products were key drivers of total Company
gross profit performance.
Recent Developments and Plans:
*PPE acquisitions for the year were primarily for the ongoing construction of a new
tin can factory in General Santos, the acquisitions of new IT software applications
and hardware, and plant maintenance in the various facilities. Php 290 million of
these PPE acquisitions were financed by Initial Public Offering proceeds
PSE Revised Listing Rules
1. EBITDA of at least P50 million for 3 full fiscal years immediately preceding the
application for listing
2. A minimum EBITDA of P10 million for each of the three fiscal years
3. Must further be engaged in materially the same businesses proven track
record
Competitive Strengths
1. Established market leadership positions with iconic, well-recognized and
trusted brands
2. Multi-category, multi-brand product portfolio catering to different customer
tastes and price points
3. Strong track record of product innovation and successful introduction of new

products
4. Extensive market penetration through multi-channel distribution network
5. Highly scalable export business that supplies processed tuna to leading
international companies and distributes branded products to high growth
markets
6. Experienced and dedicated management team
DEFINITION of 'Sum-Of-Parts Valuation'

Valuing a company by determining what its divisions would be worth if it was broken up and
spun off or acquired by another company.
INVESTOPEDIA EXPLAINS 'Sum-Of-Parts Valuation'

For example, you might hear that a young technology company is "worth more than the sum
of its parts." This means that the value of the tech company's divisions could be worth more
if they were sold to other companies. In most cases, larger companies have the ability to
take advantage of synergies and economies of scale that are unavailable to smaller
companies, enabling them to maximize a division's profitability and unlock unrealized value.

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Valuation Methods:

1. Discounted Dividend= div PV of div

3. Strong track record of product innovation and successful introduction of new

DEFINITION of 'Sum-Of-Parts Valuation'

INVESTOPEDIA EXPLAINS 'Sum-Of-Parts Valuation'

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