OFI another diamond in food industry

Company Profile
Oriental Food Industries Holdings is an investment holding company, established and incorporated in 1978. It operate in two segments:
1.  Snack food and confectionery ~ which is involved in manufacturing and marketing range of snack food and  confectioneries. Rota, Super Ring, Jacker and Oriental are well known household brand names in Malaysia
2. Property development ~ which covers development of land into commercial buildings.
Basically, we can just ignore its property development segments as company's revenue is only generated by its snack food and confectionery sector. 

Company manufacturing plant and head office are based in Ayeh Keroh, Melacca. All the operations are held in four individual factory being name Factory 1,2,3,4. Factory 4 is the largestof all the plants with considerable room for our ongoing expansion plans.

OFI has invest substantially into its own research and development (R&D). With their own laboratory, company manage to :
~keep pace with consumer demands.
~creating new product ranges
~improve the production processes, thereby reducing cost and wastage while increasing productivity and  maintaining standards.

Financial Result
OFI has just release its 1Q11 financial result few days ago. Compared to the same quarter last year, company revenues grow from RM29.2m to RM35.3m. Higher revenue has also driven PBT higher to RM3.7m from RM2.7m. EPS for current quarter also see a 42% hike to RM0.052.
 
Compare to preceding quarter, company revenues also increase marginally from RM32m.

For the past 5 years, OFI Current Assets has also increase consistently, at the same time its total liabilities able to keep under good control. NTA currently stood at RM1.94.

Technical Outlook
30days ago, OFI successfully broke above resistance RM1.85 and a cup formed. It surge to RM2.18 before retrenched to RM1.90 in 2 weeks time, and close at RM1.92 on 20/8/10. As long as it stay above RM1.90, a handle might follow.
By looking the length of the cup, the handle still have two months time to form. With TP 2.44

Company Valuation
With company NTA RM1.93, its price-to-book value=1x(20/8/10 closing price=RM1.92). Including this quarter, OFI EPS(ttm) = RM0.22. P/E 8.7X is deemed cheap for me.

Overall
OFI is a fundamentally good company. Its last five years financial results is a proof. Company Assets also accumulate slowly as we hope not too long, it can become net cash. I rate this as ACCUMULATE at RM1.90~RM1.95