Ultrajaya Milk (ULTJ IJ) is the leading dairy company in Indonesia. Its most popular product “Ultra Milk” has a market share of roughly 40% and dominates the mass market. The company focuses on “UHT milk”. Such milk has been treated with ultra-high temperatures and stored in aseptic packaging, giving it a shelf life of 6-9 months at normal room temperatures. This makes UHT milk highly convenient. Especially in Indonesia given that the climate is tropical and the cold chain infrastructure is undeveloped.
You seem to like milk a lot....might want to check out Greatview Aseptic Packaging: milk packaging in China, a cheaper version of tetra pak. Trading around a projected PE of 12. Jardine and Mengniu own some. Net cash, high dividend, low (medium?) growth.
If we expect to see inflation 'spikes' over the next decade, the main question would be how soon they are able to pass on raw material costs every time this happens.
I don't know the industry: the competition & barriers to entry.
What’s your thinking behind as to why Indonesia’s milk consumption will grow? Don’t they use coconut milk in their cooking? Is it just population growth
Do you have any idea what other income in the income statements is? It's fairly significant - 97.4 billion Rupiah in 2020.
You seem to like milk a lot....might want to check out Greatview Aseptic Packaging: milk packaging in China, a cheaper version of tetra pak. Trading around a projected PE of 12. Jardine and Mengniu own some. Net cash, high dividend, low (medium?) growth.
Idea is from: http://www.globalstockpicking.com/category/greatview-aseptic/
Raw materials is 90% of COGS, so they are susceptible to inflation:
https://greatviewpack.com/site/assets/files/1405/e00468_3.pdf
If we expect to see inflation 'spikes' over the next decade, the main question would be how soon they are able to pass on raw material costs every time this happens.
I don't know the industry: the competition & barriers to entry.
What’s your thinking behind as to why Indonesia’s milk consumption will grow? Don’t they use coconut milk in their cooking? Is it just population growth