Highlights
KLSE: KAWAN (7216)       KAWAN FOOD BHD MAIN : Consumer
Last Price Today's Change   Day's Range   Trading Volume
1.68   +0.02 (1.20%)  1.68 - 1.68  18,000
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Overview

Market Cap: 605 Million
NOSH: 360 Million
Avg Volume (4 weeks):68,800
4 Weeks Range:1.64 - 1.84
4 Weeks Price Volatility (%):
20.00%
52 Weeks Range:1.64 - 2.74
52 Weeks Price Volatility (%):
3.64%
Average Price Target: 2.20
Price Target Upside/Downside: +0.52
Stamp duty exempted for year 2019

Financial Highlight

Latest Quarter | Ann. Date 30-Sep-2018 [#3]  |  22-Nov-2018
Next QR | Est. Ann. Date: 31-Dec-2018  |  27-Feb-2019
T4Q P/E | EY: 26.26  |  3.81%
T4Q DY | Payout %: 1.49%  |  39.00%
T4Q NAPS | P/NAPS: 0.88  |  1.91
T4Q NP Margin | ROE: 11.95%  |  7.28%

Headlines

Date Subject
12-Feb-2019 8大成长股项看俏
17-Jan-2019 PublicInvest Research Headlines - 17 Jan 2019
23-Nov-2018 Kawan Food - Unfriendly turnout
27-Sep-2018 Kawan Food - Moderate outlook
23-Aug-2018 Kawan Food - Waiting for capacity boost
06-Aug-2018 Kawan Food - On trial run
25-May-2018 Kawan Food - 1QFY18 - A Soft Beginning
28-Feb-2018 Kawan Food - Plant delay to impact forecast

Business Background

Kawan Food Bhd manufactures and sells frozen food. The product portfolio includes – Paratha, Chapatti, Spring Roll Pastry, Naan, Bun, Bakery, and others. The business is spread across Malaysia, Rest of Asia, Europe, North America, Oceania, and Africa. The company generates maximum revenue from Malaysia.
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  2 people like this.
 
goldenluck16 RM5.00....huat ar
30/06/2017 09:32
YK Tsong Now just warming up only
30/06/2017 09:38
goldenluck16 Proposed bonus issue 1 for 3.
04/07/2017 22:06
YK Tsong age 49 masih kuat..every 3 years pregnant ^=^
05/07/2017 08:05
richcares if i buy now, still eligible for bonus issue
05/07/2017 13:42
member41 Yes but must hold till day before ex date.
07/07/2017 08:38
shpg22 Think this stock gonna turn from Kawan to Lawan soon. At PE 38, its the most expensive consumer stock in Bursa.
10/07/2017 01:48
shpg22 Already high valuation coupled with mediocre result. Price heavily manipulated due to low volume.
19/08/2017 12:22
goldenluck16 Take profit. Ex date for bonus 4 Sept..
21/08/2017 21:46
allanchong1988 what is the new TP after bonus share ex date?
22/08/2017 14:42
InvestIncome Why drop so much today?
22/08/2017 15:59
Chiok87 Yea why drop?
06/09/2017 16:47
allanchong1988 Any good news from this counter?
21/09/2017 14:04
熊凯钰 what happen to this counter?
17/10/2017 10:36
newz88 oh wow.. dropping to below 3??
17/10/2017 10:53
shpg22 Still ridiculously expensive. Should be worth not more than 1.50. Maintained STRONG SELL.
21/10/2017 00:23
monkeyinvestor bye bye i gonna buy it no matter what!
22/10/2017 20:23
goldenluck16 Another round of selling by fund manager
25/10/2017 20:43
newz88 Kawan sudah mula Lawan! Up Up Up!
27/10/2017 13:41
BlackWhite Well price dropped 40% pe would drop too, good buy if below 3
10/12/2017 11:19
mf Rip
10/12/2017 11:21
newz88 I think Kawan is making new investments, and diversifying business, do you guys think it will go up soon?
18/12/2017 09:46
BlackWhite Good buy to keep since iPhone X not selling well so our electronic stocks darling will fall
27/12/2017 10:15
ZERO@G Anyone think they are underpriced?
27/02/2018 11:59
Neut_ron1 In share market ppl buy on future earning ;) does kawan got it?
17/06/2018 01:40
mbge7clt why suddenly up?
18/06/2018 16:26
apolloang so low volume u also can push it up if u want.....hahaha
18/06/2018 16:30
sincerelysharing shpg22 if u feel kawan fair price only worth 0.85, then u should short sell kawan from now. But i willing to take all ur short selling shares at tis level. Immature comment, really misleading.
18/06/2018 22:48
mbge7clt what's cooking for kawan?
18/06/2018 22:51
vcheekeong P E Kawan ?
21/06/2018 17:29
monkeyinvestor tis stock not qualify to short la!
28/06/2018 10:11
sincerelysharing monkeyinvestor, kawan is qualify for IDSS la....
03/07/2018 22:53
Sammi168 Why this share dropped from $3.30 to 2.20?
13/07/2018 17:47
750023336 https://www.facebook.com/fatainvesting/posts/2101283453447857

Kawan Food new plant with 3x capacity started operating in July 2018, management aim to achieve full utilization in 3 years
17/07/2018 20:54
sleang good sign, improving QoQ, hopefully the migration to new factory & the utilisation will soon be higher :)
23/08/2018 10:48
sleang interesting findings,
for the past 3yrs 8mths, the stock only traded $2.3 and below for about 30% of the time (all adjusted for div/bonus), that is without new factory capacity.
Today, it closed at 2.30, with new factory started being used, not to mention the QoQ results improved over Q1, lets see if there's opportunity to collect lower :)
23/08/2018 22:23
BlackWhite Drop some more good brother help lah
27/08/2018 15:38
BlackWhite Drop drop
06/09/2018 10:55
villa1668 Tried the roti canai before, the taste not nice.
26/09/2018 18:08
GRACE1966 Add red bean very sedap.
28/09/2018 19:53
villa1668 Outside roti canai better than Kawan, kuah very important
09/10/2018 21:02
BlackWhite Now drop until no eye see
18/11/2018 14:57
BlackWhite Better drop some more for everybody benefit
18/11/2018 14:58
sincerelysharing https://www.thestar.com.my/business/business-news/2018/12/10/cimb-research-retains-kawan-food-target-price-of-rm3pt02/
11/12/2018 23:05
monkeyinvestor avg down !
12/12/2018 00:05
monkeyinvestor buy buy call now!
12/12/2018 15:36
commonsense The new plant in Pulau Indah has been completed which is expected to boost the paratha production by 3-fold and freezing capacity by 5x. However, it is still not sure if the plant will be able to run at a high utilisation rate as the demand from some of its main market has seen negative growth in particular North America market where 9m18 sales was down by 17% compared to last year. Malaysia, Asia and Europe markets on the other hand saw their combine sales increase by 5% during the same period. Even with the growth from these 3 markets the overall sales of the group actually saw a small decline of 2%.

But the more worrying issue lies on the compression of Kawan’s profit margin. 9m18 PBT margin fell to 13.5% vs FY17 margin of 18.3%. If the Pulau Indah plant could not operate at a high enough utilisation rate, investors need to be prepared for a further drop to the group’s profit margin.

That being said the group has a very strong balance sheet. As of sept 18 the group is still in a net cash position of RM19.8 mil. This will provide the group with some support when trying to manoeuvre out of the current challenging period.

At the current price, Kawan is currently trading at a valuation of 30x PE which is really high considering that the group might face difficulties in delivering profit growth to its investors. Kawan had only managed to deliver a profit of RM17.2mil in 9m18 compared to the RM23.2 mil achieved in 9m17. This represent a drop of profit of more than 25%.

If you are looking to diversify your portfolio outside of Kawan Food (due to the perceive weaker market outlook), I would recommend you to look at MBMR.

MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 5.5x PE (based on target FY18 PATAMI of RM145mil. 9m PATAMI is already RM106mil). PB is low at only 0.5x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17.

For FY19 growth will be driven by the still high demand of new Myvi and the launch of the new SUV in 1Q19 and also the new Alza in 2H19.

Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. Most analysts have a TP of above RM3 for the company with Hong Leong being the lowest at RM3.13 and Maybank the highest at RM4.18.

Good luck.
23/12/2018 09:56
D_investor Good sharing @commonsense, especially on providing counter perspective on the capacity expansion by Kawan Food Berhad. As an investor, i believe we need to sieve through various sources of information, while remaining rational and not biased.

Here's a link to a summary report on Kawan Food Berhad (https://mcoremart.com/index.php/product/kawan-food-berhad-kl-7216-summary-report/). It provides summarized version of alternative perspective on Kawan Food Berhad and considers the downside of the capacity expansion.

Have a good read and happy investing!
30/12/2018 11:39
RainT time to be hunter ?
17/01/2019 19:00
shpg22 I think after all I didn't mislead anyone. The price indeed drop from 3.10 to 1.72 from the time of writing to current. Time always proof I m right.
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sincerelysharing shpg22 if u feel kawan fair price only worth 0.85, then u should short sell kawan from now. But i willing to take all ur short selling shares at tis level. Immature comment, really misleading.
18/06/2018 22:48

shpg22 Still ridiculously expensive. Should be worth not more than 1.50. Maintained STRONG SELL.
21/10/2017 00:23
16/02/2019 18:45


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