Oldtown Bhd

Oldtown Bhd

Postby winston » Tue Jun 24, 2014 8:20 am

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Oldtown shares edge up

KUALA LUMPUR: Oldtown Bhd's shares on Bursa Malaysia edged up in the morning session following a report on the company's regional growth potential.

At 11.04am, the counter added four sen to RM2.24 with 72,100 shares changed hands.

AllianceDBS Research in a research note today said riding on the rising coffee consumption in Asia, Oldtown's growth potential in the region was attractive, particularly in the coffee mix segment.

"We believe the company has a strong brand name that can capitalise on rising coffee consumption in the region," it said.

The research house said Asia's coffee consumption per capita at 0.5 kg per person per year is still significantly lower than other developed countries (3-4 kg).

"For instance, we see huge growth potential from China (48 gramme per capita) where Oldtown has cafe outlets in Guangdong province, extensive distribution network covering the key first and second tier cities, and its recent venture into the booming e-commerce industry in China via TMall.com, its flagship online store," it added.

However, AllianceDBS has lowered Oldtown's earnings forecast on anticipation of a slower expansion for its food and beverages segment as the local operating environment is increasingly competitive due to weak consumer sentiment.

"As a result, we have trimmed our earnings by 9-11 per cent for financial years 2015 and 2016.

The research house has maintained a ‘Buy’ call on Oldtown with a higher target price of RM2.55 from RM2.35 previously.


Source: Bernama
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Re: Oldtown Bhd

Postby winston » Fri Aug 22, 2014 6:02 am

Oldtown plans expansion, aims to open 27 cafes in four countries BY NG BEI SHAN

PETALING JAYA: Oldtown Bhd is planning to open 21 to 27 new cafes in Malaysia, Singapore, Indonesia and Australia in the financial year ending March 31, 2015 (FY15).

In its annual report, group managing director Lee Siew Heng said its café chain business remained the key revenue contributor, recording RM207.059mil in sales in financial year 2014 (FY14), up 1.2% versus RM204.6mil in FY13.

It plans to open 12 to 15 new outlets in Malaysia, two to three in Singapore, six to eight in Indonesia and one in Melbourne or Sydney, Australia.

On top of that, it has a medium-term plan to set up a new food-processing centre in Guangdong Province, China to support the growing number of new cafés.

“The establishment of the centre has taken longer than expected, owing to a protracted delay in the conceptualisation and discussions with various parties to deliver an ideal outcome,” he said.

Despite that, the operations were well supported by a licensed food-processing centre that supplies main ingredients to its cafés in Guangdong province.

“The group remains steadfast with the plan to open more licensed outlets in strategic locations within Southern China to tap into this massive market,” Lee added.

The café chain segment was the main income driver, contributing 54% to its consolidated revenue for FY14.

Of its 238 outlets in Malaysia, Singapore, Indonesia and China, 89 are fully-owned, 20 partially-owned, 108 franchised and 21 licensed.

There were a total of 30 cafés in FY14 internationally compared with 23 a year earlier.

It is exploring new licensing opportunities in Singapore and shifting away from the company-owned and operated outlets in Indonesia to the sub-licensing model to expand in the archipelago.

Its Indonesian outfit, PT Oldtown Indonesia, was licensed to establish and operate cafés in Jawa and Bali but the execution of its second master licence agreement enabled it to set up cafés throughout Indonesia.

Its foray into Australia this May was expected to contribute positively to the group in the medium to long-term underpinned by the overwhelming demand and acceptance of Asian cuisine.

“Pursuant to the agreement with the master licensee, our group is granted an option to participate directly in the Australia operations as a shareholder with up to 51% of equity stake after the fourth year of operations.

“Through this strategic option, the group is poised to ride on the better business performance of the café operations in Australia,” Lee said.

As for its beverages manufacturing division, it had appointed new distributors in Indonesia and the Philippines.

It strives to strengthen its position in the market via various marketing campaigns, advertising and promotional activities to fortify the Oldtown White Coffee brand equity.

It noted the highly competitive domestic market and had to match the competition with more aggressive marketing campaigns as well as frequent promotional activities.

“In essence, our domestic market will be a potentially large coffee market, and we believe our strategy to develop our coffee brands as premium labels will enable sustainable long-term growth in this growing coffee segment in the future,” Lee said.

Nonetheless, he noted the challenges in the operating environment going forward.

Source: The Star
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Re: Oldtown Bhd

Postby winston » Mon Sep 08, 2014 5:46 am

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Alliance DBS Research optimistic on Old Town

KUALA LUMPUR: Alliance DBS Research is maintaining its Buy call on Old Town Bhd but with a lower target price of RM2.25 based on [b]19 times CY15 [/b]earnings per share (EPS).

“Post-earnings revision, valuation remains undemanding at 16 times CY15 EPS compared to regional peers’ 27 times PE (weighted average),” it said on Friday.

Alliance DBS Research remains positive on the group’s long term prospects in the Asean region, especially the fast moving consumer goods (FMCG) segment.

“We remain optimistic after attending Old Town’s briefing yesterday. The management has taken measures to improve the operating structure (restructured distributorships and suppliers, and automated production line) to tackle cost pressures,” it said.

The research house said this would put the group on a stronger footing to resume its growth trajectory in FY16.

To recap, [b]1QFY15 core profit was flat on-quarter but fell 6% on-year, [/b]mainly due to higher S&D expenses (+36% on-year) which compressed OP margin from 17% in 1Q/4QFY14 to 15.4% last quarter.

In terms of sales, both FMCG (+10% on-year, +2% on-quarter q-o-q) and F&B (+6% on-year, +4% on-quarter) registered growth. And the weak 1QFY15 results have been priced in after the recent 14% share price correction. Furthermore, S&D expenses should normalise the rest of the year due to seasonal factors.

“Cut earnings by 7%-13%. We cut FY15F/16F/17F EPS by 7%/13%/13% after factoring in higher cost pressure,” it said.

Source: The Star
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Re: Oldtown Bhd

Postby winston » Sun Oct 19, 2014 5:50 am

OLDTOWN BHD

By RHB Research

Buy (Maintained)
Target Price: RM2.15

OLDTOWN Bhd’s share price has corrected more than 20% from its high of RM2.22 in the past three months, according to RHB Research.

It said although it expected growth to remain muted for the remaining three quarters after its weak first quarter results, OldTown’s growth momentum would gain pace thereafter.

“The retractment was due to a combination of weak first-quarter financial year 2015 results and weak performance of its food and beverage (F&B) arm, which reflects the current challenging operating environment, as well as slower than expected growth in its key earnings catalyst such as its fast-moving consumer goods (FMCG) arm,” the research house said.

It said it expected growth from OldTown’s F&B arm to remain soft amid stiff competition and consumers’ cautious discretionary spending.

On OldTown’s FMCG arm, RHB Research noted that it should recover and underpin growth ahead. “The weak performance of its FMCG arm in the first quarter was due to seasonal factors as well as higher than expected selling and distribution spending.

“We expect earnings from this arm to normalise in the second half and to grow to double digits in the medium to long term,” RHB Research said.

Source: The Star
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Re: Oldtown Bhd

Postby winston » Thu Nov 20, 2014 6:54 am

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Franklin Resources trims stake in OldTown

KUALA LUMPUR (Nov 19): Franklin Resources Inc, one of the substantial shareholders in Oldtown Bhd, has been trimming its stake in Old Town Bhd ( Financial Dashboard) in the past few months.

According to filings with Bursa Malaysia, it showed the investment advisory services agency had disposed some 5.08 million shares, representing a 0.82% in OldTown since August.

Oldtown share price has been on the decline since August, falling from RM2.20 to RM1.67 today.

According to the latest filing to Bursa Malaysia, Franklin Resources disposed 43,000 shares on the open market. After the disposal, Franklin Resources's shareholdings has dropped to 6.41% or 28.58 million shares from 7.23% in August, as of today.

Meanwhile, Oldtown has also accelerated its share buy back activities since August. The filing to the stock exchange shows that the number of shares retained in the treasury has increased to 7.67 million as at Oct 20, from 615,000 as at June 3.

Source: The Edge
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Re: Oldtown Bhd

Postby winston » Thu Nov 27, 2014 5:32 am

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Oldtown 2Q profit slips 1.14% to RM11.25 mil

KUALA LUMPUR (Nov 26): Oldtown Bhd ( Financial Dashboard)'s net profit slipped 1.14% to RM11.25 million in the second quarter ended Sept 30, 2014, from RM11.38 million in the previous corresponding quarter.

Revenue shed 3.76% to RM91.7 million from RM95.3 million a year earlier.

The kopitiam chain operator said its manufacturing segment recorded lower profit mainly due to lower sales generated from the overseas market.

However, its café chain segment reported higher profit, mainly due to higher other operating income and lower advertising and promotional expenses during the quarter, said Oldtown in a filing with Bursa Malaysia today.

For the half-year period, net profit slid 2.6% to RM22.95 from RM23.56 million in the same period last year, but revenue rose 1.63% to RM189.6 million from RM186.5 million previously.

Oldtown said its manufacturing segment's results were impacted by lower export sales and higher selling and distribution expenses.

But its café chain segment's profit rose higher mainly due to higher other operating income and lower advertising and promotional expenses during the period. The segment also recorded higher revenue.

On prospects ahead, Oldtown plans to open more outlets in Malaysia for the current financial year ending Mar 31, 2015.

It also plans to open more outlets in Singapore, Indonesia and Australia, but will adopt a "conservative expansion model" in China.

Oldtown ended down 1 sen or 0.6% to RM1.65, translating to a market capitalisation of RM734.73 million.

Source: The Edge
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Re: Oldtown Bhd

Postby winston » Tue Jan 06, 2015 8:31 pm

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Oldtown Bhd saw its substantial shareholder, Canada-based Mawer Investment Management Ltd, acquire more shares in the food and beverage (F&B) outlet operator.

In a filing with Bursa Malaysia today, Oldtown said Mawer Investment had acquired a total of 2.06 million shares in the company over three market days, on Dec 31, 2014, Jan 2 and Jan 5.

Following the purchases, Mawer’s stakes in Oldtown has increased to 39.39 million shares or an 8.91% stake.

Meanwhile, US-based Franklin Resources Inc disposed of 39,600 shares in Oldtown on Jan 2. It had trimmed its interests in Oldtown slightly to 25.4 million shares, or a 5.74% stake.

Oldtown’s share price closed unchanged at RM1.51 today, with a market capitalisation of RM667.6 million.

Source: The Edge
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Re: Oldtown Bhd

Postby winston » Tue Dec 22, 2015 8:22 pm

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Franklin Resources ups stake in Oldtown

KUALA LUMPUR: US-based fund Franklin Resources, Inc raised its shareholding in Oldtown Bhd, which owns and operates a chain of café, with the latest acquisition of 3.51 million shares.

A filing with Bursa Malaysia showed the fund acquired the shares in the open market on Dec 15. Its share price closed at RM1.41 on that day.

After the recent acquisition, its shareholding increased to 11.33% or 51.17 million shares.

Presently, Oldtown has 237 café outlets, of which 207 café outlets are in Malaysia, 10 in Singapore, 16 in Indonesia and four in China.

Source: The Star
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Re: Oldtown Bhd

Postby winston » Fri May 26, 2017 12:31 pm

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OldTown 4Q profit slumps 46% as both café, beverage ops drag

by Samantha Ho

KUALA LUMPUR (May 25): OldTown Bhd's net profit for the fourth quarter slumped 46% year-on-year on weaker earnings contribution from both its café chain operations and beverage manufacturing business.

Net profit for the quarter ended March 31, 2017 (4QFY17) was down at RM9.91 million, versus RM18.36 million a year ago, though revenue registered a slight 2% uptick to RM106.96 million from RM104.52 million, supported mainly by higher topline from beverage manufacturing.

The group proposed a final single tier dividend of 1 sen per share and a special single tier dividend of 3 sen per share, bringing its full FY17 payout to 10 sen, compared to 9 sen in FY16.

OldTown told Bursa Malaysia today that its café chain operation saw a 73% y-o-y fall in profit before tax (PBT) to RM1.09 million, mainly due to a RM4.76 million provision for doubtful debts, while revenue dipped 7% to RM47.78 million.

Meanwhile, its beverage manufacturing PBT posted a 32% fall in PBT to RM11.54 million, due to higher selling and distribution expenses, though revenue grew 11% to RM59.18 million.

For the full 2017 financial year (FY17), OldTown's net profit grew 16% to RM60.77 million from RM52.27 million in the previous year, driven by the group's manufacturing of beverages, which recorded double-digit growth in both revenue and PBT.

However, the café chain operations saw a dip of 21% y-o-y in PBT to RM16 million due to lower revenue, higher staff costs, and the provision of doubtful debts.

Revenue for the year was up 8% to RM425.2 million from RM393.41 million previously, as it exported more beverages and benefited from foreign exchange gains.

Going forward, OldTown said it would focus on the opening of traditional, "generic" outlets throughout Malaysia.

"We will also be steadfast in identifying potential locations where the lower cost model (known as OldTown White Coffee Basic) remains a viable solution and a growth model," the group said, adding that it continues to receive interest from prospective franchisees.

However, weak consumer sentiment and tighter regulations are expected to adversely impact the business in Malaysia. Across the Causeway, OldTown said its strategy in Singapore would be centred on growing the "basic" concept outlets.

OldTown shares slipped 6 sen or 1.9% to RM3.09 today, continuing its decline from a record high of RM3.26 on May 19. It has a market capitalisation of RM1.43 billion.

Source: The Edge

http://www.theedgemarkets.com/article/o ... e-ops-drag
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Re: Oldtown Bhd

Postby behappyalways » Mon May 15, 2023 5:31 pm

Man in M'sia absolutely done with sad strips of butter on Oldtown White Coffee's kaya toast
https://mothership.sg/2023/05/oldtown-m ... aya-toast/
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