Publicly-listed food and beverage company RFM Corporation reported that its President and CEO Jose Ma. A. Concepcion III has bought P45 million worth of the company’s shares.

In a disclosure to the Phlippine Stock Exchange (PSE), RFM said Concepcion bought 15 million shares of RFM through his personal holding company at a price of P3.00 per share.

Concepcion said in a statement that, at such a price, the stock is undervalued noting that, “at 3 pesos a share, the market is valuing RFM at only 10 times price earnings ratio.”

“RFM has a good sales and income growth track record over the years and our portfolio of brands like Selecta Ice Cream, Selecta Milk, Royal Pasta and Fiesta Pasta are significant market leaders in their own categories,” he added.

“RFM continues to invest in future growth with a new factory site in Cavite and new production lines in Laguna. We have a very strong balance sheet: no bank loans at the parent company level and more than adequate liquidity,” Concepcion said. 

He pointed out that, “in fact, RFM has bought back about 132 million shares through our share buyback program and at P3.00 per share, the estimated dividend yield is 7 percent.”