Want Want Holdings - Hot Kid Leading The Way

1st Q 2005:
Revenue Up 29.6%
EPS Up 47%
2nd Q 2005:
Revenue Up 19.6%
EPS Up 31.48%
3rd Q 2005:
Revenue Up 23.1%
EPS Up 55.56%
4th Q 2005:
Revenue Up 51.5%
EPS Up 93.67%
FULL YEAR 2005 RESULTS:
Revenue Up 31.4%
EPS Up 55.7%

Background

The Company was incorporated in Singapore on 28 October 1995. It changed its name to Want Want Hldgs Ltd on 22 March 1996, in connection with the change in its status to that of a public limited company. The principal activities of the Company are those of an investment holding company. The principal activities of the Group's subsidiaries and associate companies are the manufacturing and trading of snack foods and beverages and related products and investment holdings.

The Group started with I Lan Food Industrial Co Ltd, incorporated in Taiwan on 31 May 1962 and produced canned agricultural products for export. In 1983, I Lan entered into a technical cooperation agreement with Iwatsuka to manufacture rice crackers in Taiwan. Iwatsuka is one of the top rice cracker producers in Japan. Since then, I Lan has achieved a profitable track record and established a strong brand name for its rice cracker products in Taiwan under its Want Want brand name.

Majority of the Group's production facilities are located in China with the remainder in Taiwan. Its products are distributed widely with China taking up a dominant share of sales, followed by Taiwan and other export markets.

For many years, we have seen the great branding success by Want Want. Everyone regardless of age, race or religion would definitely have seen the Hot Kid advertisement on our TV sets. I bet you might be humming to the tone already. I have always admired the innovative taiwanese branding capability, and Want Want's management never failed to impress me either.

See Want Want advertisements(if you haven't got enough of it):
Want Want advertisements

Want Want is definitely the dominant player in the rice crackers industry in China. It operates it in an increasingly competitive environment. Want Want's focus on branding and nice packaging gives them a durable competitive advantage over other competitive brands furthered strengthened by its savvy management.

Want Want made an excellent move in 2002 to introduce the market with another subbrand of its own, Yi Wang. Flipped over the package and you will see the bottom right hand corner, Want Want Holdings in orange bold. This is a strategic move by the management to flood the market and maintain market share while eliminating would be cheap competitions. Based on the lastest financial report, it shows that there is an decrease in the contribution on their subbrand. I would like to think that consumers are increasingly becoming brand conscious and their purchasing habits changed. Want Want range of products broadly categorised as rice crackers, milk products, snacks, candies, beverages (coffee and carbonated drinks).









See their company website : Want Want Website

Many gave doubts when Want Want ventured into building a hospital, Want Want Hospital. Want Want's management talk freely to investors about its affairs and do not clam up when troubles and disappointments occur.In addition, Want Want did share buybacks during in 2003 after BNP Baribas issued an unfavourable report on Want Want. This shows the strength in depth of the management of Want Want.

Based on the lastest balance sheet, it shows that the hospital is starting to show some contribution to the bottomline of the company.Earnings would have been higher by US$ 2.2m if not for the one-off writedown in negative goodwill for acquisition of Qianhe Hotel.



Link: Want Want Hospital

Want Want Holdings is a company with a broad heart and is definitely always welcomed.

"As we have benefited greatly from the support of the general pubic through our years of growth,the Company reciprocates with active involvement in various charitable causes.To-date,Want Want Foundation in China and Singapore,and two funds in Taiwan,namely Want Want Cultural & Educational Fund and Taipei Sze Jeu Welfare Fund Society,have been set up to provide assistance and support to the aged,poor and less privileged Company and major catastrophe."


I recently did a scuttlebutt on our local shopping malls.

. Want Want Xiao Man Tou





. Want Want Milk




. Want Want Crunchy Chocolate Wafers




. Want Want Rice Crackers - Seaweed




. Want Want Rice Crackers - Senbei(1)




. Want Want Rice Crackers - Senbei(2)






. Want Want Rice Crackers - Crequeline Au Riz



Competition





Want Want in its FY report stated the below market outlook:

􀂉 Expect key raw materials’ prices to remain stable
􀂉 Past effort in internal restructuring &
strengthening controls to be continued to yield
better results
􀂉 Non-food businesses to commence operation
Start-up losses expected but impact would not be
significant in 2006
􀂉 Continue focus in China given its vast potential
despite keen competition


I expect the Want Want brand to be around for many generations to come. Giving joy and laughter to both young and old. Bridging between generations.
给你旺旺，你旺我旺大家旺旺。


See Fisher's 15 Questions on how he evaluates a company.

Common Stocks and Uncommon Profits

So how do you find Want Want Holdings ? I would like to hear your views. Just add me a comment.

Want Want Annual Report 2004

Want Want AR Archive


Cheers
Niversphere.

Please read the prospectus and perform your analysis before making any investment decision. The above does not constitute a recommendation to apply for this company. I will not be liable for any losses incurred by anyone who invests based solely on the above-mentioned information.