Stock Name: OLDTOWN
Company Name: OLDTOWN BERHAD
Company Name: OLDTOWN BERHAD
| Research House: JF APEX | Price Call: HOLD | Target Price: 1.79 |
Showing posts with label OLDTOWN. Show all posts
Showing posts with label OLDTOWN. Show all posts
May 21, 2015
September 14, 2012
JF Apex downwards Old Town's forecast
Stock Name: OLDTOWN
Company Name: OLDTOWN BERHAD
JF Apex Securities Bhd has revised downwards its revenue forecast on Old Town Bhd by 1.56 per cent and 4.61 per cent to RM326.2 million and 363.9 million respectively for the 2012 and 2013
financial years, citing the delay in its Ipoh factory construction as a factor.
In its research note today, JF Apex said the delay would cause the group's Fast Moving Consumer Goods (FMCG) division to lose a potential revenue of RM5.1 million and RM17.6 million in the 2012 and 2013 financial years respectively.
"However, we have upgraded the group's target price to RM2.23 from RM1.69, with a "hold" rating."
Meanwhile, in a separate research note, OSK Research Sdn Bhd said it remained positive of Old Town's prospects, driven by its kiosk outlets and growing overseas business.
"The company intends to launch its first kiosk this month or next month in the high-traffic malls of Suria KLCC and MidValley Megamall.
"This can potentially fuel the company's earnings as the payback period is estimated to be as fast as 12-18 months," the research house said.
OSK Research also expects Old Town's third quarter earnings to be subdued since the period coincided with the Ramadhan month, with earnings expected to amount to between RM8 million and RM9 million.
The research house maintained its "buy" call on the group, with an unchanged fair value of RM2.31. Bernama
Company Name: OLDTOWN BERHAD
| Research House: JF APEX | Price Call: HOLD | Target Price: 2.23 |
JF Apex Securities Bhd has revised downwards its revenue forecast on Old Town Bhd by 1.56 per cent and 4.61 per cent to RM326.2 million and 363.9 million respectively for the 2012 and 2013
financial years, citing the delay in its Ipoh factory construction as a factor.
In its research note today, JF Apex said the delay would cause the group's Fast Moving Consumer Goods (FMCG) division to lose a potential revenue of RM5.1 million and RM17.6 million in the 2012 and 2013 financial years respectively.
"However, we have upgraded the group's target price to RM2.23 from RM1.69, with a "hold" rating."
Meanwhile, in a separate research note, OSK Research Sdn Bhd said it remained positive of Old Town's prospects, driven by its kiosk outlets and growing overseas business.
"The company intends to launch its first kiosk this month or next month in the high-traffic malls of Suria KLCC and MidValley Megamall.
"This can potentially fuel the company's earnings as the payback period is estimated to be as fast as 12-18 months," the research house said.
OSK Research also expects Old Town's third quarter earnings to be subdued since the period coincided with the Ramadhan month, with earnings expected to amount to between RM8 million and RM9 million.
The research house maintained its "buy" call on the group, with an unchanged fair value of RM2.31. Bernama
April 9, 2012
Oldtown - OUTPERFORM: In very good shape
Stock Name: OLDTOWN
Company Name: OLDTOWN BERHAD
Company Name: OLDTOWN BERHAD
| Research House: KENANGA | Price Call: BUY | Target Price: 1.58 |
We attended Oldtown's company briefing yesterday, where the turnoutwas extremely encouraging. We reckon that the number of participants wasactually more than double that compared to the previous briefing we attended.While there was no breaking information as it was more of an introductorysession to the company's business and plans, we nonetheless went away feelingoptimistic as we gather that management is still confident and steadfast in itseffort to grow the company amidst the promising outlook for both the caf'' andbeverage distribution businesses. We note that institutional shareholding inthe stock has also increased lately, which supports our conviction on thecompany's bright prospects. Reflecting its continuing positive outlook, we aremaintaining our Oldtown's FY12 and FY13Enet profit of RM43.9m and RM51.7m, which will see the earnings growing 9.3% and17.7%, respectively. Our OUTPERFORM call on Oldtown is reaffirmed with a TP ofRM1.58, based on 12x PER over its FY12 EPS of 13.2sen. Continue to buy thestock at market, for it still offers potential strong total returns of 27.5% atthe current price (capital upside of 22.4% to our TP plus gross dividend yieldof 5.1%).
Rising interest inthe stock. We came away from the briefing feeling positive as it is evident that investors' interests are growingstronger, which reinforces our conviction buy call on the stock which weinitiated with OUTPERFORM and TP of RM1.46. Meanwhile, we also observed that the foreign and local funds have startedto increase their stakes in the stock recently, and have accumulated 18.6%stake as at 23 Feb 2012. We also understand that the promoters (management andmajor shareholders) will no longer sell their shares in the open market andthis could be a positive indication of the company's future earningsgrowth.
Comfortable with ourearnings forecasts. Currently, wehave the highest forecast for FY12E net profits of RM43.9m as compared to consensusforecast of RM41.7m. We believe our estimate is achievable at this juncture askey drivers are going strong. Main drivers are the strong double digits growthrate in the FMCG segment and a moderate growth in the caf'' chains. The stronggrowth of FMCG is expected to be boosted by the continuation of likely risingmarket shares seen across the three regions in 2012 (2011 market share gains-Malaysia: +1.2ppt; Hong Kong: +0.7ppt; Singapore: +2.7ppt), as well as, penetration into untapped marketssuch as a few provinces in China, South Korea and Vietnam. Meanwhile, themanagement's vision of opening more caf'' outlets domestically and regionallyshould be more than adequate to sustain the moderate growth rate in the segmentthat we are conservatively forecasting for now.
We are maintainingour bullish view on the company. If the economic condition normalizes withChina continuing its growth trajectory, we believe there could be more upsidesto our FY13E estimates. Currently, our FY13E net profit of RM51.7m, assumes a very conservative18.6% growth in FMCG. Our sensitivity analysis indicates that if FMCG growth hits 40% levels, it will increase our FY13E earnings by 8% to RM55.7m(see below for details), which implies 7.6x Fwd PER. This strong growth of FMCGis expected to be boosted by the continuation of likely rising market sharesseen across the three regions, as well as, penetration into untapped marketssuch as a few provinces in China, South Korea and Vietnam
Source: Kenanga
February 29, 2012
OLDTOWN (FV RM1.55 - BUY) FY11 Results Review: Just Like Old Times
Stock Name: OLDTOWN
Company Name: OLDTOWN BERHAD
Company Name: OLDTOWN BERHAD
| Research House: OSK | Price Call: BUY | Target Price: 1.55 |
Oldtown's FY11 revenue was in line with our estimate, making up 97.2% of our projection, while corenet profit was within ourprojection due to gains on disposals andbetter profit margins in 4Q11. We continue to like Oldtown's attractive valuation and bright prospectsmoving forward. We are maintaining our BUY recommendation on the stock, with anunchanged fair value of RM1.55, pegged to 13.0x FY12 EPS.
In line.Oldtown's revenue of RM285.5m was in line with our estimates, accounting for 97.2%of our numbers while the reported netprofit of RM40.2m beat our forecast by 13.9% due to gains on various disposalsamounting to RM9.2m. Stripping out the gains, core net profit of RM30.1m waswithin our estimate, accounting for 102.6% of our numbers. The group's EBITDAcame in at RM68.1m versus our estimate of RM63.3m while core net profit fell6.0% y-o-y due to higher administrative and general expenses associated withthe group's expansion plans and the 6-month recognition of profit from thesubsidiaries it acquired after its listing, instead of 12 months (had theacquisition been completed on 1 Jan 2011, core net profit would have beenRM34.2m). Revenue growth of its FMCG division outpaced its F&B division asFMCG revenue accounted for some 38% of total revenue compared to 35% in theprevious year.
Maintaining forwardearnings. We are maintaining ourprofit growth forecasts for FY12 and FY13 given that the group would be able torecognize full year profits from the subsidiaries it acquired after itslisting. We believe its FMCG margins may further improve as prices of food commodities such as milk powder and Arabica coffee were stable in1Q12 but we think that margins at its F&B business will continue to comeunder pressure as the company is unableto pass on its higher costs to customers - or risk losing marketshare to its competitors - and is facing escalating rental costs. Also, we gather thatthere may be a one-off impairment charge of some RM2-3m in FY12 relating to itsacquisitions after the group went public.
Upside potential to our view. i)Stronger-than-expected volume growth in its FMCG business in theoverseas markets, ii) prices of food commodities are sustained at current levels,iii) faster-than-expected rollout ofits outlets locally and overseas, and iv) obtaining 'halal' certification fromJAKIM sooner than expected.
Maintain BUY. Wecontinue to like Oldtown's exposure to the defensive F&B subsector and itsattractive valuation at 10.5x FY12 EPS, plus decent top- and bottom-line growthmoving forward. This will be further enhanced by its regional expansion plans. The company hasdeclared a second interim dividend of 4 sen, bringing the total dividend to 6.5sen for FY11. We maintain our BUY call, with an unchanged FV of RM1.55.
Source: OSK188
February 17, 2012
January 20, 2012
January 4, 2012
July 13, 2011
OldTown to open slightly higher
Stock Name: OLDTOWN
Company Name: OLDTOWN BERHAD
KUALA LUMPUR: Cafe chain operator and coffee beverage manufacturer OldTown Bhd is expected to open slightly higher on Wednesday, July 13 amid the overall cautious market sentiment.
Stock market data showed there were buy orders at RM1.30, which was just five sen above its offer price of RM1.25, in pre-opening trade.
Some 63.4 million new shares were issued, of which 10 million were allocated for the public. This portion was oversubscribed by 10.8 times.
Hwang DBS Vickers Research fair value was RM1.50 based on FY12 price-to-earnings of 12 times.
Company Name: OLDTOWN BERHAD
| Research House: HWANGDBS | Price Call: BUY | Target Price: 1.50 |
KUALA LUMPUR: Cafe chain operator and coffee beverage manufacturer OldTown Bhd is expected to open slightly higher on Wednesday, July 13 amid the overall cautious market sentiment.
Stock market data showed there were buy orders at RM1.30, which was just five sen above its offer price of RM1.25, in pre-opening trade.
Some 63.4 million new shares were issued, of which 10 million were allocated for the public. This portion was oversubscribed by 10.8 times.
Hwang DBS Vickers Research fair value was RM1.50 based on FY12 price-to-earnings of 12 times.
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