Posted by NatsukoMishima > 1 week ago | Report Abuse

In bursa u can only trust jepun !

Posted by BursaVulture > 1 week ago | Report Abuse

am not against companies that ventured into new business but this one....

Posted by Good123 > 1 week ago | Report Abuse

Outperform
Last Price
1.66
Avg Target Price
2.29
Upside/Downside
+0.63 (37.95%)

Posted by Good123 > 1 week ago | Report Abuse

keep some😜

Posted by Fabien _the efficient capital allocator > 1 week ago | Report Abuse

From selling frozen roti to selling IT equipment. talk about 360 degree turn. owners using funds from its public listed vehicle to invest in private business. big red flag

Posted by Good123 > 1 week ago | Report Abuse

Last Call, going to fly anytime, get your ticket ya haha

Kawan Food Berhad - Recovery in Export Sales
Date:
2024-11-21
Firm:
PUBLIC BANK
Stock:
KAWAN
Price Target:
2.45
Price Call:
BUY
Last Price:
1.65
Upside/Downside:
+0.80 (48.48%)
After adjusting for unrealized forex loss of RM11.3m and other non-core items, Kawan Food Bhd (Kawan)'s 3QFY24 core net profit came in at RM12.7m (+64% YoY). The stronger set of results was mainly driven by an increase in sales to Europe and North America markets. Cumulative 9MFY24 core net profit of RM31m was above our and consensus estimates, accounting for 82% and 86% of our full-year estimates respectively. The discrepancy in our results was mainly due to lower-than-expected operating cost, given the better operational efficiency and lower raw material costs. Therefore, we raise our earnings forecast for FY24-26F by an average of 13% after cutting our operating cost assumptions. We are still optimistic on Kawan's future prospects, premised on robust demand for frozen food, given the convenience and affordability of frozen food. We reiterate our Outperform call with a higher TP of RM2.45 based on 17x FY25F EPS (average of its 3-year forward PE). Kawan declared a second interim dividend of 2.8sen, bringing the YTD dividend declared to 7sen, translating to an attractive dividend yield of 4.2%.

3QFY24 revenue grew 10.9% YoY to RM83.8m, underpinned by stronger sales from the export market especially to the Europe (+65.9% YoY) and North America (+25.4% YoY) markets. The increase in export sales had helped to cushion the softer local market, which saw its revenue decreased by 3% YoY.
3QFY24 core net profit jumped 64% YoY to RM12.7m. Kawan reported a headline net profit of RM1m (-87.5% YoY) due to unrealized forex loss. After adjusting for exceptional items, Kawan's core net profit came in at RM12.7m. The stronger performance was likely driven by better operational efficiency coupled with lower raw material costs (eg wheat). As a result, Kawan's GP margin increased by 4.9 ppts YoY to 35.5%.
Outlook. We foresee Kawan to post stronger earnings in 4QFY24 on greater festive spending and new product launches. Additionally, we believe that it will also be supported by the recent strengthening of the USD and lower wheat prices. In the longer run, we continue to remain optimistic on Kawan's future prospects, underpinned by robust demand for frozen food given the rising consumer preference towards frozen food for convenience and its more affordable price tag.
Source: PublicInvest Research - 21 Nov 2024

Posted by Good123 > 1 week ago | Report Abuse

The **BUY** recommendation for **Kawan Food Berhad (Kawan)**, with a **target price of RM2.45** (an **upside potential of 48.48%** from the last price of RM1.65), is based on several key factors, as outlined in the recent analysis from Public Bank dated **November 21, 2024**. Here’s a detailed explanation of why investors should consider buying Kawan shares now:

### 1. **Strong Financial Performance in 3QFY24**
- **Core Net Profit Growth**: Kawan posted a **64% year-on-year (YoY) increase in core net profit**, reaching **RM12.7 million** in 3QFY24. This significant growth shows that the company is effectively managing its operations and generating strong returns, particularly from the export market.

- **Higher Sales to Europe and North America**: The strong results were largely driven by an **increase in export sales**, particularly to Europe (+65.9% YoY) and North America (+25.4% YoY). These regions are key growth drivers for Kawan's frozen food business, and the company’s ability to capture more market share there reflects robust demand for its products.

- **Operational Efficiency and Lower Raw Material Costs**: The company's **operational efficiency** improved, and **raw material costs**, especially for wheat, came down, boosting profit margins. The **gross profit (GP) margin** increased by **4.9 percentage points YoY** to **35.5%**, reflecting stronger cost management and better operational practices.

### 2. **Strong Earnings Outlook for FY24**
- **Above-Expectations Performance**: For the first 9 months of FY24 (9MFY24), Kawan achieved a **core net profit of RM31 million**, which is **82% of the firm's full-year estimates** and **86% of consensus estimates**. This suggests that Kawan is on track to surpass expectations, with the potential for a stronger finish to the year in 4QFY24.

- **Positive Outlook for 4QFY24**: The company is expected to post even **stronger earnings** in 4QFY24 due to:
- **Greater festive spending** (likely due to the holiday season).
- **New product launches** that could drive additional sales.
- **Beneficial macroeconomic factors**, such as the **strengthening of the USD** and **lower wheat prices**.

### 3. **Robust Demand for Frozen Food**
- **Growing Consumer Demand**: There is a **strong, ongoing demand for frozen food**, driven by **consumer preferences for convenience and affordability**. Frozen food is becoming an increasingly popular choice for busy consumers seeking easy meal solutions at a lower cost. This trend is expected to continue, which supports Kawan's growth prospects in the long term.

- **Export Growth Potential**: Kawan’s ability to expand its presence in international markets, particularly Europe and North America, bodes well for its future growth. This international expansion is crucial in mitigating the softness seen in local markets, where revenue declined by 3% YoY in 3QFY24.

### 4. **Upgraded Earnings Forecast**
- Public Bank has **raised its earnings forecast for FY24-26** by an average of **13%**, driven by the **lower-than-expected operating costs** and improved efficiency. This positive revision highlights Kawan's improving financial health and growing market position.

### 5. **Attractive Dividend Yield**
- Kawan declared a **second interim dividend of 2.8 sen** for FY24, bringing the total dividend declared year-to-date to **7 sen**. This translates to an attractive **dividend yield of 4.2%**, making the stock appealing not only for capital gains but also for income-seeking investors.

### 6. **Valuation and Target Price**
- **Price Target of RM2.45**: The firm has set a target price of **RM2.45**, which represents a **48.48% upside potential** from the current price of **RM1.65**. This target is based on a **17x FY25F EPS**, which aligns with the company's 3-year average forward price-to-earnings (PE) ratio.

- This target price suggests that Kawan shares are currently undervalued, presenting a strong investment opportunity with significant upside potential.

### 7. **Conclusion**
Given Kawan's solid financial performance, strong outlook, growth potential in export markets, and favorable market conditions, the **BUY** recommendation is well-supported. The company’s ability to manage costs effectively, expand its market reach, and benefit from growing demand for frozen food positions it well for future growth. With the stock trading at an attractive valuation and offering a solid dividend yield, Kawan presents an appealing investment opportunity.

Posted by Good123 > 6 days ago | Report Abuse

Dividends
Payout Ratio
Payout ratio (TTM)
Earnings retained
EPS 0.076
Dividend Yield
4.22%
Industry Median 3.37%
Annualized Payout
0.0700
Paid unevenly
5-Years Growth
+10.93%

Posted by Good123 > 6 days ago | Report Abuse

Analysts' Recommendations
3 Buy
0 Hold
0 Sell
Ratings:3 analysts
Overall Consensus
Strong Buy
Analysts 12-Month Price Target:
Average 2.167
(+31.31% Upside)

Posted by Good123 > 6 days ago | Report Abuse

Does Kawan Food Pay Dividends? What’s The Current Dividend Yield?
The Kawan Food dividend yield is 4.22%.
What Is the Kawan Food Market Cap?
As of today, Kawan Food market cap is 571.20M.
What is Kawan Food Earnings Per Share?
The Kawan Food EPS is 0.076.

Posted by Good123 > 6 days ago | Report Abuse

Rebound is near, anytime hehe

Kawan Food Stock Price History
Time Frame
Monthly
Download
12/12/2022 - 12/12/2024

Date

Price

Open

High

Low

Vol.

Change %
Dec 01, 2024 1.650 1.690 1.760 1.620 4.36M -2.37%
Nov 01, 2024 1.690 1.710 1.740 1.680 1.60M 0.00%
Oct 01, 2024 1.690 1.710 1.760 1.680 1.35M -1.17%
Sep 01, 2024 1.710 1.680 1.740 1.640 1.26M +1.79%
Aug 01, 2024 1.680 1.740 1.740 1.650 1.62M -3.45%
Jul 01, 2024 1.740 1.780 1.790 1.720 3.54M -2.25%
Jun 01, 2024 1.780 1.760 1.800 1.740 3.43M +0.56%
May 01, 2024 1.770 1.880 1.890 1.760 7.01M -5.85%
Apr 01, 2024 1.880 1.810 1.910 1.770 4.92M +3.30%
Mar 01, 2024 1.820 1.790 1.830 1.780 1.77M +1.68%
Feb 01, 2024 1.790 1.800 1.850 1.790 931.70K -3.24%
Jan 01, 2024 1.850 1.810 1.850 1.780 890.70K +2.78%
Dec 01, 2023 1.800 1.880 1.880 1.780 3.33M -4.26%
Nov 01, 2023 1.880 1.860 1.920 1.840 6.37M +0.53%
Oct 01, 2023 1.870 1.800 1.900 1.770 9.25M +3.89%
Sep 01, 2023 1.800 1.750 1.840 1.740 3.26M +2.27%
Aug 01, 2023 1.760 1.860 1.910 1.680 5.78M -4.86%
Jul 01, 2023 1.850 1.910 1.980 1.810 926.00K -2.63%
Jun 01, 2023 1.900 1.980 1.990 1.810 1.58M -5.00%
May 01, 2023 2.000 2.100 2.220 1.950 2.61M -3.85%
Apr 01, 2023 2.080 2.130 2.180 2.080 606.90K -1.89%
Mar 01, 2023 2.120 2.190 2.220 2.080 2.96M -2.75%
Feb 01, 2023 2.180 2.200 2.280 2.120 2.23M -1.80%
Jan 01, 2023 2.220 2.220 2.400 2.160 2.98M 0.00%

Posted by Good123 > 6 days ago | Report Abuse

buy3 huat3 hehehe

Stock Price History (Dec 2022 - Dec 2024):

Kawan Food’s stock has ranged from RM1.64 to RM2.40 over the past two years.
Recent volatility with price fluctuations, showing monthly changes of +0.53% to -5.00%.
Stock experienced a 5% increase to RM1.76 in December 2024, its highest in five months.
Recent Developments:

Kawan announced a joint venture to acquire Realtech Automation for RM2.5 million, marking an entry into the IT distribution sector.
Positive investor sentiment, with 5% price surge following the announcement.
Share buybacks (20 million treasury shares) help support stock price.
Key Catalysts for Future Growth:

Rising demand for frozen food in export markets (Europe, North America).
Entry into IT distribution with Realtech could diversify revenue streams.
Operational efficiency and cost management could improve profitability.
Dividend yield (around 4.2% in 2024) makes the stock attractive for income-seeking investors.
Risks:

Market volatility from external economic factors (e.g., inflation, commodity price fluctuations).
Execution risks in the new IT venture.
Stock Price Forecast (Dec 2024 - Dec 2025):

Short-Term (Dec 2024 - Mar 2025): Stock likely to fluctuate between RM1.60 to RM1.90.
Medium-Term (Apr 2025 - Sept 2025): Stock could rise to RM2.00 to RM2.20 if IT venture and export sales perform well.
Long-Term (Oct 2025 - Dec 2025): Stock could reach RM2.40 to RM2.50, representing a 34-43% upside from current levels.
Conclusion:

Kawan Food’s stock has strong growth potential, with a forecasted 34-43% upside by December 2025 if the company successfully executes its new ventures and maintains strong market conditions.

Posted by Good123 > 6 days ago | Report Abuse

Outperform

Kawan Food Bhd’s decision to undertake a share buyback could be driven by several factors, including:
1. Improving Share Price: The company may believe that its shares are undervalued in the market and buying them back would help increase the value for existing shareholders.
2. Capital Efficiency: By reducing the number of outstanding shares, Kawan Food Bhd can increase earnings per share (EPS), potentially improving financial metrics and investor perceptions.
3. Surplus Cash: If the company has excess cash and lacks immediate investment opportunities, it may use the buyback as a way to return value to shareholders.
4. Signaling Confidence: A share buyback can signal to the market that the company has strong prospects and management is confident about its future, which can help restore investor trust.
5. Preventing Dilution: If the company has issued shares or options in the past that might dilute existing shareholders’ stakes, a buyback could counterbalance that effect

Posted by Good123 > 5 days ago | Report Abuse

You go and ask their old retired singaporean mamak CEO pandi, unwanted in singapore but begging for a job in malaysia pulak, bukan? Old fox, no talent in malaysia ka, all dead ka? haha

@Fabien _the efficient capital allocator

From selling frozen roti to selling IT equipment. talk about 360 degree turn. owners using funds from its public listed vehicle to invest in private business. big red flag

1 day ago

Posted by Good123 > 5 days ago | Report Abuse

kawan is hopeless takda young talents using a retired mamak from spore jadi ceo ... 60+++ boleh masuk old folk dah.... hahaha

Posted by Good123 > 5 days ago | Report Abuse

no successor , kawan is dead ... hahaha

Posted by dawchok > 4 days ago | Report Abuse

Ms. GAN KA BIEN age 43, Executive Director is the daughter of the owner.
YEAP CHEE KEONG, age 39, Chief Operating Officer, is the son in law of the owner.
GAN MENG HOI, age 33, Head of National Sales is the nephew of the owner.
Young generation is lining up as successor.

Posted by dawchok > 4 days ago | Report Abuse

I have a question here: for the past many years, the div payout was <40% and out of sudden the payout for this year is 60%(assume the q4 eps is similar to Q3 at 3.5cts, adjusted back the unrealized currency loss). Can this 60% payout be sustained ? So that we can expect 4.2% yield going forward.

Posted by Good123 > 3 days ago | Report Abuse

Fighting for power/money among brothers punya anak2, etc even worse.. koyak🤣🤣🤣🤣

Patut splitkan

@ Ms. GAN KA BIEN age 43, Executive Director is the daughter of the owner.
YEAP CHEE KEONG, age 39, Chief Operating Officer, is the son in law of the owner.
GAN MENG HOI, age 33, Head of National Sales is the nephew of the owner.
Young generation is lining up as successor.

Posted by Good123 > 3 days ago | Report Abuse

Mau buat IT biz, mamak ceo retiree tua Dari spore . pasti Kantoi. Mamak tahu roti canai je, dah 60+++ Tak celik IT pulak mampuslah