Cafe de Coral 341

Cafe de Coral 341

Postby winston » Tue Jul 08, 2008 1:51 pm

Vested.

HIGHLIGHTS 2007/2008 FINAL REPORT TO SHAREHOLDERS

Continuous turnover growth for the 21st consecutive year since public listing exceeding the HK$4 billion mark.

Continuous double-digit profit growth reaching the historic high of HK$420 million.

Recognised as PRC Consumer’s Most Favourable Hong Kong Brand and winner of Top Service Award.

Record-breaking branch development expansion of 20 units under our various restaurant brands in Hong Kong.

Unlocking the vast potentials of the China business platforms with a total of 40 and 72 outlets operating in Southern and Eastern China respectively.

Simultaneous construction of our HK$350 million central processing plants both in Hong Kong and China.

Shareholders’ value was enhanced for the 13th consecutive year with this year’s dividend increment of another 19%, reaching a payout ratio of 66%.

Marching forward to celebrate the Group’s commemorative 40th Anniversary Year.
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Re: Cafe de Coral 341

Postby helios » Tue Jul 08, 2008 2:38 pm

wah ...

Winston vested in this ... finally ya?

Good. Nice chart.
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Re: Cafe de Coral 341

Postby winston » Tue Jul 08, 2008 2:41 pm

Hi San,

Be careful. The PEG is 2 ( 10% Growth and PE is 20 ).

However, the management is very strong and I have a small position to follow their story.

Take care,
Winston
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Re: Cafe de Coral 341

Postby helios » Tue Jul 08, 2008 2:50 pm

noted, i haven't been follow'g on their news lately, juz taking a peek @ their chart these 2 weeks.

their corporate website has tons of information to be digested everytime u re-visit it ...

yeah, agreed e management is good, & i like their vertical growth aspect in F&B biz.
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Re: Cafe de Coral 341

Postby winston » Wed Jul 09, 2008 9:10 am

Vested to follow their story..

Cafe de Coral keeps pace
Chen Liyi
Wednesday, July 09, 2008

Cafe de Coral Holdings (0341) saw its net profit rise 13.56 percent to HK$420 million in the past fiscal year, benefiting from menu changes and higher prices.

Turnover in the year to the end of March rose 10.42 percent to HK$4.29 billion. A final dividend of 35 HK cents was declared.

Chairman Michael Chan Yue-kwong said yesterday the chain kept its net profit margin at 10 percent despite inflation.

He intends to slow price increases, having lifted tariffs by 5 percent last year and another 3 percent since April this year - a move made necessary by the nearly 10 percent increase in supply costs.

But Cafe de Coral's prices are still "reasonable" compared to other popular Chinese eateries and restaurants, said Chan, hence sales increased by 7 to 8 percent.

Cafe de Coral served 300,000 customers, 7 percent more than a year ago.

Chan said he hopes to open 15 to 20 outlets in the mainland and eight to 10 in Hong Kong in the coming year. Capex is set to rise to HK$150 million from HK$120 million. He said he hopes to have 1,000 restaurants worldwide in five years.
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Re: Cafe de Coral 341

Postby -dol- » Sat Jul 12, 2008 2:19 pm

Cafe de Coral has managed to sustain the improvement in their fast food menus this year. Business at their Causeway Bay outlet is quite brisk - compared to Fairwood's nearby.

Cafe did make a short-lived foray into Singapore in the 70s. However, they did not last long as Singapore was probably not affluent then to be able to afford the prices they were charging. They will probably stand a good chance today - because I find their offerings superior to the many "HK Chai Chan Teng" wannabes here. Also, Singaporeans should find their prices very affordable now. However, Singapore is so small that it's not a priority for them - China is where their growth is.

Those food operators who do not have a regional strategy to expand in SE Asia probably see no reason to come to Singapore - and we are the poorer for it. Pret-a-manger decided to close shop here, while their outlets in HK are going strong and doing brisk business.
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Re: Cafe de Coral 341

Postby winston » Tue Aug 26, 2008 7:17 am

Vested. From Dr. Check:-

In this volatile market, let's take a look at a quality pick - Hong Kong's biggest fast food chain Cafe De Coral (0341).

The company said net profit increased 13.56 percent to HK$420 million in the past fiscal year, benefiting from menu changes and higher prices.

Turnover for the year ended March was up 10.42 percent to HK$4.29 billion. The number of customers served by the eatery rose 7 percent from a year ago.

Chairman Michael Chan Yue-kwong said yesterday the chain maintained its net profit margin at 10 percent regardless of inflation. Chan hopes to operate 1,000 restaurants worldwide in five years.

BOCI cut its target price for Cafe de Coral to HK$18.75, while retaining its "outperform" call.

BNP Paribas cut its target price to HK$17.40 but kept its "buy" call, saying the chain's China earnings could be a potential rerating catalyst as business is expanding fast.

BNP estimates a three-year recurring earnings compound annual growth rate of 18.2 percent at Cafe de Coral. BNP also sees a good chance of a special interim dividend in the December results announcement.

Cafe De Coral operates 604 restaurants worldwide, including 244 in Hong Kong, 140 in the mainland and 201 in North America, under the Manchu Wok brand.

It outperformed the market by dropping only 20 percent from its peak of HK$19.34.

Cafe De Coral, which closed at HK$15.36 yesterday, will be worth buying below HK$15.
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Re: Cafe de Coral 341

Postby winston » Fri Nov 21, 2008 9:33 am

Was at a Twinwood in Xidan BJ recently and they are also doing well ...

From Dr. Check:-

Today, let's add a defensive stock to our shopping cart for future use. Cafe de Coral (0341) is Hong Kong's biggest fast-food chain, with 154 outlets locally out of 581 worldwide. Turnover increased for 21 consecutive years and for the year ended March 2008 it exceeded HK$4 billion. Net income reached a new high of HK$420 million, up 13.56 percent.

Future growth will mainly come from the mainland where Cafe de Coral plans to open 200 more outlets in the next five years to add to the 120 existing ones.

DBS expects the eatery's annual compound earnings to grow at 13.5 percent in the next two years and treats it as a defensive play because the fast-food business will be less vulnerable in an economic downturn. DBS set a target price of HK$14.10 or 14.2 times 2009 expected price to earnings ratio.

The share closed at HK$12.52 yesterday. Dr Check recommends buying near the HK$9 level
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Re: Cafe de Coral 341

Postby winston » Wed Dec 10, 2008 7:48 am

Not vested.

Cheer for Cafe de Coral amid gloom in sector
Sanchez Wang

Fast-food chain operator Cafe de Coral (0341) estimated the total revenue of the Hong Kong food and beverage industry would plunge by HK$10 billion this year, pinched by the global financial tsunami.

Chairman Michael Chan Yue- kwong said revenue for the city's catering industry amounted to HK$70 billion a year on average but the figure is expected to fall by HK$10 billion this year due to the financial crisis. During the SARS outbreak in 2003, catering sales slumped to HK$43 billion.

However, Cafe de Coral posted a steady 14.87 percent growth according to interim results, despite the recession in the Hong Kong catering industry. Net profit for the six months ended September rose to HK$200.6 million from HK$175 million a year ago. Revenue increased to HK$2.34 billion from HK$2.09 billion. The cost of premises is down by 15 to 20 percent, which could benefit the business.

The chain's interim report described the company's view as "cautiously optimistic."

Chan said the company has HK$800 million cash in hand. It will take the financial crisis as an opportunity to beef up its business in Hong Kong and the mainland.

The company opened 37 new outlets in the first half, with 13 more coming by the end of the second half. It is also building two new food processing plants in Hong Kong and Guangzhou at a cost of HK$400 million, to be completed by 2010.
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Re: Cafe de Coral 341

Postby winston » Wed Dec 10, 2008 4:43 pm

Cafe de Coral Rises in Hong Kong on 15% Profit Gain (Update1)
By Stephanie Wong

Dec. 10 (Bloomberg) -- Cafe de Coral Holdings Ltd., the biggest-listed Chinese fast-food chain, rose the most in two weeks in Hong Kong trading after saying profit rose 15 percent in its fiscal first half.

The restaurant chain’s shares gained as much as 6 percent to HK$13.98, the most since Nov. 25. The stock traded at HK$13.96 at 2:56 p.m. in Hong Kong.

“Cafe de Coral’s sales performance is better than a lot of its peers and this proves that they are recession-proof,” Fiona Wong, consumer analyst at Sun Hung Kai Securities Ltd, said over the phone from Hong Kong. “Because people aren’t sure if they could hold onto their jobs, even the middle-class prefer to eat at cheaper diners like Cafe de Coral.”

Hong Kong restaurants boosted sales by 14 percent in the third quarter after prices rose. Cheaper restaurants have become more attractive as Hong Kong slipped into its first recession since the severe acute respiratory syndrome epidemic in 2003, said Alice Hui, associate director of research for DBS Vickers Hong Kong Ltd.

Cafe de Coral’s gain today trims this year’s loss to 27 percent, compared with a 45 percent drop for the benchmark Hang Seng Index.

The company said yesterday profit in the six months ended September rose HK$200.6 million ($26 million) from HK$175 million, after sales were boosted by the opening of 19 restaurants in Hong Kong during the period.

Expansion Opportunities

While it will adopt a “more conservative” investment strategy because of the financial crisis, Cafe de Coral said it will continue to seek opportunities to expand.

“A lot of the small restaurants are closing because of the financial tsunami,” Sun Hung Kai Securities’ Wong said. “Rents have come down a lot and salaries are going to fall so this would improve the company’s margin.”

Thirty-seven of the 50 new stores planned for the current fiscal year in Hong Kong and mainland China already opened, Chan said at a briefing yesterday.

The fast-food chain is expanding overseas and in China. It operates in Hong Kong under the Cafe de Coral, Oliver’s Super Sandwiches and Spaghetti House names, and in North America runs the Manchu Wok chain. It has a total of 588 outlets worldwide.

Still, the company’s sales at stores open more than a year will probably slow to 4 percent in the six months ending March from 8 percent in the previous period “because people tend to spend less on meals amid an economic downturn,” Chairman Michael Chan said yesterday.

While new products and promotions have helped the chain gain sales, it said 2008 is “undoubtedly the most challenging period the group has ever experienced since” its founding in 1968.

Hong Kong’s retail-sales growth slowed in October to the weakest since 2003, the year of the severe acute respiratory syndrome outbreak and also the last time the city was in a recession.
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