Major global producer of condensed milk. Etika is a leading regional food and beverage group listed on the SGX Catalist Board (formerly known as SESDAQ) since 2004. Its wholly-owned subsidiary, Etika Dairies Sdn Bhd, was established in 1997 and is one of the world’s major producers of sweetened condensed milk.

Initiate with BUY and target price of S$0.26. SGX Research Incentive Scheme target is based on a 20% discount to our cumulative PER valuations of each major business division, taking into consideration the depressed valuations of micro-cap stocks, coupled with a weak economic environment and balance sheet. The company’s high net gearing position
warrants monitoring going forward. Initiate with a BUY given the 83% share-price upside and its healthy earnings outlook.