上市捷报丨沙利文助力Davis Commodities Limited成功赴美上市(NASDAQ: DTCK)

Davis Commodities Limited(Stock Code:NASDAQ: DTCK) on2023year9month19The company successfully listed on the NASDAQ exchange on [date]. It is a leading sugar supplier in Singapore. The company is an agricultural products trading company specializing in the trading of sugar, rice, oilseeds and other products, operating in markets across Asia, Africa and the Middle East. Frost & SullivanFrost & Sullivan,Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan') isDavis Commodities LimitedThe listing provides exclusive industry advisory services, and we would like to extend our warmest congratulations on its successful listing.

Davis Commodities Limited(hereinafter referred to as 'Davis Commodities"") Yu2023year9month19The company plans to go public on the 1st of July1,087,500share, issue price per share4.0US dollars, with the net amount of raised funds being approximately4.35One million dollars.

During the process of listing in the US, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing the writing of relevant parts of the prospectus (such as the overview, competitive advantages and strategy, industry overview, business, and other important chapters), and assisting the issuer in completingSECCommunication with investors, helping them quickly understand the market ecosystem and competitive landscape, assisting issuers in completingSECFeedback on various industry-related issues, etc.

Investment highlights

The company is a leading sugar supplier;

Maintains close relationships with other intermediaries on the company's value chain;

The company offers a diverse range of products and has a vast distribution network;

The company has an experienced management team;

The company has good management and a flexible financial model;

The company has good risk management capabilities.

Overview of Asian Agricultural Products Markets

2021In the year, the Asian sugar market size reached164billion dollars.COVID-19 pandemicAfter the outbreak of the pandemic, sugar demand in the Asian region has been lower than expected compared to before the pandemic. The Asian sugar market has been2019year175billion dollars decreased to2020year157billions. It is expected that the market size will grow from2022year166USD billion growth to2026year186billion US dollars2022Year-end2026The annual compound growth rate for the year is2.9%The Asian sugar market is expected to achieve significant growth due to the expansion of the food processing industries in Indonesia and Malaysia. The increasing demand for alcoholic and non-alcoholic beverages has driven market growth. The growing demand for pastries, candies, and dairy products (such as milk-based beverages, yogurt, and ice cream) is expected to increase market demand for sugar in the near future.

Source: Frost & Sullivan report

According to Frost & Sullivan's forecast to2026In [year], the sugar market scale in Singapore will reach1.371Billions of US dollars, mainly due to the widespread application of sugar in various industries such as baking, candies, canned foods, frozen foods, and pharmaceuticals. With the increasing consumption of sweets and desserts, investments by major participants, product innovation, and the launch of new products will further promote market growth.

Source: Frost & Sullivan report

The scale of the Vietnamese sugar market2016year3.549USD billion growth to2021year4.586billion US dollars, with an annual compound growth rate of5.3%This is due to the acceleration of urbanization and the increase in consumer disposable income. It is expected that by2026In [a certain year], the Vietnamese sugar market scale will reach5.841billion dollars2022Year to2026The annual compound growth rate for4.9%It is expected that domestic economic growth and improvements in living quality will continue to support the development of the sugar market in the future.

Source: Frost & Sullivan report

Indonesia's sugar market size from2016year24.958USD billion growth to2021year26.832billion US dollars, with an annual compound growth rate of1.5%The main reason is the entry of cheap foreign brands into local markets. Supported by increased income levels, an increase in imported brands, and the development of distribution channels, it is expected that by2026In [year], the Indonesian sugar market size will reach29.191billion US dollars, with an annual compound growth rate of1.7%.

Source: Frost & Sullivan report

With changes in lifestyle, increased disposable income, and a growing awareness of the benefits of nutritional plans, there has been a positive impact on the grain and oil market. The grain and oil market in2021The value of the year is413billions, expected to2026Will reach in602billion US dollars, with an annual compound growth rate of7.8%（2022Year-end2026During the year, consumers' preference for improved diet has been one of the main driving factors for the market. The increase in functional food products has further fueled market growth. In addition, an increasing number of consumers seeking healthy and sustainable food options, as well as the growing number of sports and fitness enthusiasts, have contributed to the expansion and development of the market.

Source: Frost & Sullivan report

The market scale of Asian rice is at2021Year achieved2,201billion US dollars, and it is expected to start from2022Year-end2026Year will be2.5%The compound annual growth rate has expanded. Rice is a staple food for the Asian population, and the continuous development of rice processing machinery and improved packaging have increased Asia's demand for rice. In addition, the growing population and increasing disposable income are driving growth in the global market. The demand for specialty rice varieties has increased trade in long-grained rice. Changes in consumers' lifestyles and eating habits have accelerated the development of the fast-food industry market, thus driving significant market growth. Looking ahead, the expanding food and catering industry is expected to promote growth in the Asian market. As manufacturers offer a variety of products such as jasmine rice, basmati rice, white rice, brown rice, and wild rice, it is expected that rice will be further promoted as a staple food.

Source: Frost & Sullivan report

driving factors

· The vigorous development of e-commerce and the improvement of the logistics network

Recently, e-commerce in Asia has developed rapidly. E-commerce has greatly enhanced the connection between retailers and consumers, allowing them to obtain a variety of agricultural products on the same e-commerce platform. On the other hand, the improved logistics network in Asia has significantly shortened delivery times, ensuring timely product delivery. Therefore, the rapid development of e-commerce enables agricultural products to reach a wider customer base, thereby increasing sales value. Cost reduction: Technological progress and expansion of production scale have driven down the cost of energy storage batteries. In addition, the rapid development of the power battery industry has led to the application of related technologies in energy storage batteries, further reducing their cost. The continuous decline in the cost of energy storage batteries has promoted the willingness of downstream users to adopt them.

· Channel expansion

Today, agricultural products can be distributed through various online and offline channels. In addition to traditional supermarkets, large supermarkets, and convenience stores, rapidly developing logistics and widespread online shopping have created momentum for the retail market of agricultural products, as distribution channels have become more improved and diversified. Through the internet, more downstream customers can be reached, allowing retailers to sell products in lower-tier cities, which may further drive sales growth.

· Growing demand for healthier products

Driven by the improvement in living standards in Asia, consumers' health awareness is constantly increasing. The trend of consumers preferring healthier food varieties is also on the rise. Nowadays, consumers tend to choose healthier, less processed foods, as well as those that have a reduced negative impact on the body, such as refined sugar and organic foods. Many sugar manufacturers are developing innovative product varieties to meet market demand. Health issues related to lifestyle, such as obesity and diabetes, are expected to further drive the demand for healthier sugar varieties.

· The utilization rate in processed foods and beverages is continuously increasing

The food and beverage industry is driven by continuous innovation and new product development, as well as the evolution of consumer demand. Due to its wide range of applications, sugar has become one of the main components in food processing. The growing demand for processed foods and beverages from consumers is a major driver of market growth. In addition, the use of sugar in alcoholic and non-alcoholic beverages is also increasing. The upward trend in consumer beverages has increased demand for various beverages, including dairy products, soft drinks, and functional beverages. On the other hand, consumer demand for desserts is constantly increasing, which is expected to drive demand for sugar in the coming years.

Competition landscape of the sugar market in Singapore

It is estimated that the sugar supply market in Singapore is relatively fragmented.2021In the year, the company's revenue was900US$10,000, accounting for the Singapore sugar market7.5%market share.

Source: Frost & Sullivan report

Frost & Sullivan has extensive research experience in the food and beverage industry, assisting well-known enterprises in successfully listing on capital markets. Recent successful listings include: Zhenjiao Lidu 6979.HK), Dazhi Shares 1405.HK), Bai Guoyuan2411.HK), Aroma2147.HK), Weilong9985.HK), Shuangcai Zhuang2321.HK), Youran Animal Husbandry9858.HK), Jiǔjiǔ Wáng1927.HK), Yum China9987.HK), Nongfu Spring9633.HK), Fengxiang Food9977.HK), Simore6969.HK), China Feihai6186.HK), China Tobacco International6055.HK), Premium360（2360.HK), Wugu Millhouse1837.HK), Baby Tree1761.HK), Haidilao6862.HK), sustainable agriculture8609.HK), Longhui Holdings1007.HK), Xinhong International1587.HK), Yiyuan Liquor Industry8146.HK), Jierong International2119.HK), Bingshi International1705.HK), Nissin Foods1475.HK), Asian groceries8413.HK), Zhouhei Duck1458.HK), COFCO Meat1610.HK), Yihai International1579.HK), Zhongdi Dairy (1492.HK), Dali Foods3799.HK), Manor Ranch1533.HK), Wanzhou International0288.HK) etc.