There is possibility Franklin play style is just buy and sell within a range according to their own set upper bound and lower bound. When they hit a % discount, they will average down, when they reach their target %, they will lock in profit.
And pg 21, showing that OldTown is already the White Coffee market leader in Malaysia, HK and Singapore. As currently they are moving progressively to China mainland market, we can expect the top line would be further growth while managing the rising material costs, labour & wages and forex impact challenging.
AGM seems to be handled quite well by the management. Many calls by the shareholders for the directors to look into the branding of the cafe business. The cafe business performance has been dropping slightly for the last 2 years. One shareholder mentioned Starbucks model that I think the directors should study and finetune our Malaysian model. For example, why is Starbucks able to go into China is such a big way and Oldtown is not. The Oldtown products are doing well in TMall. This is the e-commerce arm which is doing very well and growing rapidly. Lastly, the door gift is not bad. They put in new products like the Kopi O with and without sugar, which cater for those group of customers who do not like 3-in-1 like my wife. Hopefully, Oldtown do up their branding and improve their cafe business.
Thanks Aries for sharing. I knew that Starbucks recruit local people in China and mixed with domestic culture for their products, that's why made them successful now.
Hope the directors look into the suggestions from the shareholders. Oldtown has good products and proven to be first movers among our local coffee beverage manufacturers.The dividend payout ratio is at 75%. If the performance continues on the upward trend, will keep holding this counter long term.
Hi Aries! agreed with you. to top things up, FMCG strategy is to expand its foothold in greater China. While rising cost of materials is a key challenge, they have laid out some plans to move towards automation to improve production efficiency. F&B on the other hand also looking into strengthening its presence in China, though I doubt their plan on Indo-China and Australia wont be promising. I foresee increase in revenue definitely in the coming financial year. now the question lies in, can they maintain or improve their profit margin in this challenging environment.
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....
chesslim
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Posted by chesslim > 2017-06-29 15:17 | Report Abuse
Up trend today !!