[liinda]

@LearningLuminarium Thank you for your help. You clear my mind 🙂

[liinda]

Thank you for your help @LearningLuminarium 🙂

I have found another company in the same Food and Beverage industry with my main firm. It is a dairy business. Its operation is similar to my main firm. It gains 90% income from manufacturing dairy products while my main firm also earns 90% its income from manufacturing snack and confectionary products.

Since then, may I use this dairy firm for comparison with my main firm as it is more simple than using the firm mentioned in previous posts ?
May the non-ovelapping in main products is the concern?

[liinda]

Thank you anyways @trephena Enjoy your vacation 🙂

@LearningLuminarium Can you give me some advice about my case? I am so confused right now…

[liinda]

I wanna add some further information of my case.

1) The comparator group has 2 subsidiaries. The subsidiary which major in Food &Flavor segment has its own financial statement and annual report.
So may I use this subsidiary as a comparator to my main firm for more relevance instead of using the whole group information? (include Food and Natural resources industry)

2) The subsidiary unfortunately only has Annual Report of 2014 in English, previous years’ AR + FS are in native language and also its official website. As I read @trephena comment before, it is acceptable to compare one year of main firm to comparator.
So I just wanna be sure that if I only use 2014 Annual Report together with some articles on internet, is it OK? May I be criticized as don’t gather sufficient information?

I hope to receive your reply soon as I only have this comparison part to complete my RAP. Thank you in advance 🙂

[liinda]

Hi Trephena, I have some concern to ask about my comparator.

I choose a Snack and Confectionary business as main company to analysis. It is a dominant player in this segment. In later of 2014, it sold its core segment (snack+confectionary), restructured business to focus on Food and Flavor segment and has already launched first instant noodles products (it still operates in Food industry, just changes the field)

I choose one of the leaders in Food and Flavor segment for comparison. My main firm and this comparator both manufacture instant noodles and spices so I guess that I can use this point as common things for comparison. However this comparator also focuses on natural resources sector. Currently, it is developing the world-class polymetallic project.

I wonder whether i can use this firm for comparison or not since it has a non-overlapping business interest with my main firm. Both of them are group.
Thank you in advance 🙂

[liinda]

It’s fine, don’t worry Trephena 🙂

I have re-read their FS about the specific time of selling off decision of original company. It said that “in 1 Dec 2014, the company’s shareholders approved a plan to transfer 80% equity interests.” Otherwise, the online articles say the selling proceeds is completed on July.2015
I’m confused with these timeline, so I think I may go on with a new company 🙁

[liinda]

Thank you so much for your reply @trephena

I have decided to choose another confectionary company for T8.
May I ask whether I can use the mentioned one as competitor to compare with my new choice of company or not? (financial ratios, SWOT,…)

[liinda]

Dear Trephena,
I’m planning to submit on P31. I choose a confectionary corporation (snack-food manufacturing specialized) which has year end in December 2012/2013/2014.
The problem is that: in the end of Dec 2014, this corporation sold their core activities (80% of snack food) to other company, in order to invest to a whole new industry (cooking oil and instant noodle). They were one of the leading businesses in snack food industry for more than 20 years, and now they change their strategy, focus on essential living foods.

1- Their main activity (manufacturing snack food) discontinued, and they change their main industry to cooking oil + instant noodle. I wonder how can I analyze this situation? Is it ok that I analyze their performance as normal for 2012+13 and then in 2014, I state this situation and give more analyzing about this strategy change/reasons to change/new industry’s threatens?

2 – Do I need to mention this situation in Limitation of part 2 – as they are no longer operate in this snack food industry so the information is in the past and analyzing ratios doesn’t help to improve future performance in snack-food industry?

3- Their FS is consolidated FS, which include all of their activities such as trading agriculture products, producing juice and water, other services. Is it true that we just need to analyze their core activity which brings the most income for business (snack-food)?

4- Can you give me some advice 🙂 is there any point I need to focus in this situation?

Thank you in advance : )

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