hah, up, 1.83 now hehe Kawan Food Berhad, a company listed on the Kuala Lumpur Stock Exchange, is considered to have significant growth potential for several reasons:
- *Earnings Growth: The company is forecasted to grow its earnings by **18.9%* per annum¹, which is a robust rate indicating potential profitability and financial health. - *Global Market: According to research, the global frozen food market is projected to grow at a CAGR of **3.4%* from 2019 to 2027⁴. With Kawan Food operating at a *60-65%* utilization rate, it is well-positioned to capture this demand growth due to its additional production capacity. - *Product Range*: Kawan Food has a wide range of high-quality and affordable Asian delicacies that are sold worldwide, including in Western countries where there is a demand for such products². - *Innovation*: The company's commitment to innovation is evident in its state-of-the-art manufacturing facilities and its ability to adapt to market trends and consumer preferences².
These factors contribute to the optimism around Kawan Food Berhad's potential in the market.
Share Price vs Fair Value What is the Fair Price of KAWAN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
63.2% Undervalued Current Price RM1.84 Fair Value RM5.01 20% Undervalued About Right 20% Overvalued Data Learn
Below Fair Value: KAWAN (MYR1.82) is trading below our estimate of fair value (MYR5.01)
Significantly Below Fair Value: KAWAN is trading below fair value by more than 20%.
Kawan Food Berhad has a total shareholder equity of MYR393.2M and total debt of MYR3.6M, which brings its debt-to-equity ratio to 0.9%. Its total assets and total liabilities are MYR460.7M and MYR67.5M respectively. Kawan Food Berhad's EBIT is MYR25.0M making its interest coverage ratio 120.4. It has cash and short-term investments of MYR113.5M.
Mr. Adam Pandian is Group Chief Executive Officer of Kawan Food Berhad since January 1, 2024 and was its Executive Advisor to the Executive Chairman & Head of Transformation since joining in April 2023 until January 1, 2024. He has management experience in commercial, supply chain and corporate roles, developing and implementing transformation strategies across various industries and organizations with a foundation in fast-moving consumer goods. Starting his career in Procter & Gamble in brand management, he moved on to several senior positions including Account Director for Leo Burnett, Regional Account Director for Saatchi & Saatchi, General Manager and Commercial Director for Keebler, and as Managing Director for Greater China and Southeast Asia for Kellogg. Prior to joining Kawan in April 2023, he held Chief Operating Officer roles in various divisions within the Hap Seng Group as well as corporate roles within the Group MD’s office where he served in change management, business turnarounds and driving group synergy across operating divisions. He finished Advanced Management Program by Prof. Peter Doyle, University of Warwick; Creating Competitive Advantage by Prof. Karl Moore, Oxford University; Strategic Management for HiPos, by Saatchi & Saatchi; Leaders developing Leaders Program, Kellogg Leadership Academy; Kellogg Leadership coaching; Howard Epstein (New York) and Graham Richardson (Sydney). He has Bachelor of Business Administration from National University of Singapore.
Top 24 shareholders own 80.66% of the company Ownership Name Shares Current Value Change % Portfolio % 36.1% Gfg Foundation, Endowment Arm 126,257,402 RM229.8m 0% no data 17.7% Nareshchandra Nagrecha 62,001,200 RM112.8m -13.9% no data 7.29% Thiam Gan 25,490,799 RM46.4m 0.07% no data 5.57% Public Mutual Bhd. 19,454,899 RM35.4m 0% 0.22% 2.9% Hun Soon Lim 10,137,028 RM18.4m 32.7% no data 1.67% Poh Ying Kong 5,834,100 RM10.6m 0% no data 1.35% Kumpulan Wang Persaraan 4,707,933 RM8.6m 0% 0.01% 1.32% Chung-Chen Wu 4,626,000 RM8.4m 0% no data 1.05% Eastspring Investments (Singapore) Limited 3,667,400 RM6.7m 0% 0.01% 0.93% UBS Asset Management AG 3,262,500 RM5.9m 0% no data 0.8% Tsai-Tien Chen 2,792,466 RM5.1m 0% no data 0.75% Peter Chiang 2,604,000 RM4.7m 0% no data 0.62% Kamal Shah 2,168,382 RM3.9m 0% no data 0.6% Maybank Asset Management Group Bhd. 2,112,600 RM3.8m 0% 0.62% 0.59% Kah Yin Yoong 2,070,000 RM3.8m 0% no data 0.59% Chia-Lung Wu 2,051,682 RM3.7m 0% no data 0.37% PHEIM Asset Management Sdn Bhd 1,293,100 RM2.4m 0% 1.11% 0.15% RHB Asset Management Sdn Bhd 516,100 RM939.3k 0% 0.07% 0.066% BOS Wealth Management Malaysia Bhd. 230,700 RM419.9k 0% 0.25% 0.048% SEI Investments Company 166,200 RM302.5k 0% no data 0.038% Acadian Asset Management LLC 132,700 RM241.5k 0% no data 0.035% Ka Gan 121,220 RM220.6k 0% no data 0.029% Fidelity International Ltd 99,600 RM181.3k 0% no data 0.022% Amanah Raya Investment Management Sdn Bhd 78,000 RM142.0k 0% 0.05%
Kawan Food Berhad, a company specializing in frozen food, has shown remarkable growth due to several key factors:
1. **Product Quality and Range**: Kawan Food Berhad offers a wide array of high-quality Asian delicacies that appeal to a global market. Their commitment to authentic and affordable products has helped them establish a strong presence in the frozen food industry¹.
2. **Innovative Manufacturing**: The company operates out of a state-of-the-art factory in Pulau Indah, Klang, which allows for efficient production and innovation in their product lines¹.
3. **Market Expansion**: Kawan Food Berhad has been successful in expanding its geographical footprint. They have managed to penetrate new markets, including South America, contributing to their growth⁵.
4. **Consumer Preferences**: There has been a shift in consumer preference towards convenient and longer shelf-life food items, especially due to the Covid-19 pandemic. This trend has favored the demand for Kawan Food Berhad's frozen products⁴.
5. **Financial Management**: The company's financial strategies, including adjustments in selling prices and achieving greater economies of scale, have been pivotal in improving margins and sustaining growth³.
These factors combined have contributed to Kawan Food Berhad's continued growth in the competitive food industry.
Let’s explore why wars might have a positive impact on Kawan Food’s products, the frozen food manufacturer:
Shift in Consumer Habits: During wars or crises, consumer habits often change. The popularity of frozen food tends to increase as people seek convenient, long-lasting options. Kawan Food’s products, including roti, paratha, and spring rolls, fall into this category. Robust Demand: Despite disruptions to production facilities during the Covid-19 pandemic, Kawan Food experienced strong demand. Orders were not canceled, and the company even increased its market share in the domestic market. Before the pandemic, Kawan Food held about 60% of the domestic market share. Backlog of Orders: Temporary closures and workforce restrictions led to a backlog of orders from both local and overseas customers. Kawan Food’s utilization rate is expected to rise as it resumes production at full capacity. New Products and Export Markets: Kawan Food’s growth prospects lie in new products and export markets. South America, its newest overseas market, is expected to contribute positively. The company’s ability to secure new workers and increase headcount will boost production. Embracing Industry Revolution 4.0: Kawan Food is adopting digitization and efficiency-enhancing projects. These initiatives reduce wastage, improve production efficiency, and lessen reliance on manpower. In summary, wars indirectly drive demand for Kawan Food’s frozen products due to changing consumer habits, leading to a positive outlook for the company. 🌟🍽️🚀
Member of Indices Consumer Products & Services ISINMYL7216OO004Stock ExchangeBMListed OnMain MarketSectorConsumer Products & ServicesSub-SectorFood & BeveragesCurrencyMYRShares Per Lot100Share Issued363.486mPar Value-Paid Up Cap0.000Market Cap676.085mEntitlement-SyariahYes
Subject PART A - CIRCULAR TO SHAREHOLDERS IN RELATION TO PROPOSED RENEWAL OF SHAREHOLDERS' MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE; AND PART B - STATEMENT TO SHAREHOLDERS IN RELATION TO PROPOSED RENEWAL OF AUTHORITY FOR THE COMPANY TO PURCHASE ITS OWN ORDINARY SHARES.
Please refer attachment below.
Attachments KAWAN FOOD BERHAD - CIRCULAR AND STATEMENT TO SHAREHOLDERS.pdf 661.5 kB
Announcement Info Company Name KAWAN FOOD BERHAD Stock Name KAWAN Date Announced 30 Apr 2024 Category Document Submission Reference Number DCS-30042024-00227
7216 KAWANKAWAN FOOD BHD Detailed Status Active. Member of Indices Consumer Products & Services ISINMYL7216OO004Stock ExchangeBMListed OnMain MarketSectorConsumer Products & ServicesSub-SectorFood & BeveragesCurrencyMYRShares Per Lot100Share Issued363.486mPar Value-Paid Up Cap0.000Market Cap686.989m
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Good123
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Posted by Good123 > 1 month ago | Report Abuse
closed at 1.82... good ,... ex-div... share buyback, its potentials for privatisation, takeover offer like mamee, oldtown, F&N, munchy and many more