Oriental Kopi

[winston]

not vested

Oriental Kopi’s FY2025 profit up 41% to RM60.8m

By John Lai

Posted a 40.9% increase in net profit for the financial year ended Sept 30, 2025 (FY2025), rising to RM60.75 million from RM43.13 million a year earlier.

Revenue for FY2025 surged 62.6% to RM450.92 million from RM277.28 million, with its café chain operations contributing 92.81% of total revenue, and the distribution and retail of packaged foods accounting for 6.48%.

Gross profit margin eased to 27.74% in FY2025 from 29.86% in FY2024, while net profit margin slipped to 13.47% from 15.55% previously.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/782737

[winston]

not vested

0338 KOPI (HOLD) ☕
Good ending

Oriental K’s 4QFY25 results came broadly within expectations, with revenue rising to RM133.2m and core PAT at RM15.9m, bringing FY25 earnings to RM62.1m.

Strong QoQ revenue growth across both café and packaged food segments were supported by festive demand, higher footfall and new outlet contributions, though tax-related expenses temporarily compressed quarterly earnings.

While YoY/YTD comparisons are not directly available, performance remains well above historical pre-IPO run rates, underscoring solid operational momentum.

Outlook remains positive, backed by outlet expansion, upcoming product launches, overseas market initiatives and tourism tailwinds from Visit Malaysia Year 2026.

We raise FY26/27 earnings by +8%/+6% and lift our TP to RM1.22 based on 30x FY26E PER, but maintain HOLD as the recent share price strength has stretched valuations, resulting in a more balanced risk-reward at current levels.

Source: HLIB

[winston]

not vested

0338 KOPI (HOLD)
Expansion momentum intact

Oriental K’s FY25 performance highlights continued operational momentum, driven by active outlet expansion, strong FMCG traction and deepening brand visibility.

The group ended the year with 28 outlets and plans to accelerate growth further with 8-10 new cafés in FY26 across high traffic locations.

Most notably its first entry into Sabah, which positions the brand to tap into a robust domestic and tourist market.

FMCG remains a key growth pillar, with demand scaling rapidly alongside expanding distribution into major grocers and upcoming penetration into convenience store chains, while partnerships such as the UNIQLO collaboration add meaningful brand uplift ahead of VMY2026.

With valuation already reflecting Oriental K’s scarcity premium and scalable growth profile, we maintain a HOLD call and unchanged TP of RM1.22 as the risk-reward appears more balanced at current levels.

Source: HLIB

[winston]

not vested

Highly Exciting But Mostly Priced In For Now

Highlights

SSSG accelerates despite aggressive rollout for the year. Meanwhile, upcoming locations will benefit from an influx of tourist arrivals.

International expansion is on the horizon, with firmed up details by 1Q26.

Valuations have surged, pricing in most of its exciting prospects.

Maintain HOLD and target price of RM1.20.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

May 5, 2026

Oriental Kopi – BUY

Regional expansion with disciplined execution. Oriental Kopi is finalising partnerships for overseas entry, adopting a cautious, quality-first approach.

Early success in Singapore (profitable within first full quarter) reinforces confidence in replicability with limited execution risk.

FMCG upside as a key earnings lever. With FY25 FMCG sales at RM92m (fully domestic), there is clear headroom to scale towards OldTown’s historical RM233m peak (with >60% export mix), supported by broader product offerings and export expansion.

Tourism tailwinds with limited geopolitical drag. At least 25% of outlets are located in tourist-heavy areas, positioning the group to benefit from VMY26-driven arrivals.

Exposure to conflict-affected regions is limited (~6% of tourists), implying resilience despite geopolitical noise.

Maintain BUY with target price of RM1.40. The recent selldown appears overdone. Strong earnings growth (three-year CAGR of ~23.3%) alongside regional rollout and FMCG expansion underpin re-rating potential.

Share Price Catalyst
Event: Regional outlet rollout and FMCG export scaling to drive earnings growth.
Timeline: 3-6 months

Source: UOBKH