• AmResearch model portfolio is -5% YTD, underperforming the broader index.
• We add Oriental Kopi into our model portfolio (3% weightage), a name we initiated coverage on with a BUY recommendation. Reasons why we like the company are:
  • Strong earnings growth to be driven by two key business pillars. We forecast earnings to grow at a CAGR of 32% YoY from FY24-FY27. This is supported by 19 new Malaysian cafe expansion over three years and packaged food sales.
  • Highly scalable business model with a healthy payback period. Its modular and scalable business model enables efficient expansion with a short payback period of 10-12 months.
  • Experienced management with skin in the game. Post-IPO, the management team will collectively own about 73.4% of the total shares. Notably, there is no offer for sale, indicating the management's long-term commitment to the company.
• In our strategy outlook, as part of our thematic focus on what to buy, we highlighted a robust pipeline of IPOs for 2025.
• After the adjustments, our portfolio now consists of 34% value, 30% growth, 25% dividends and 11% cash.

Source: AmInvest Research - 24 Jan 2025