yes, roti canai can fly..hahaha..Kawan also supplying a selection of flat breads and wraps to several well-known fast food chains like McD, Marrybrown, Kenny rogers, Nando in Malaysia, Singapore, Hong Kong and Indonesia. Also supplying products to hotels throughout the country, among them, Equatorial Hotel, Eastin Hotel and The Legend Hotel.
ckwan11d, yes I can see the share capital increase in the balance sheet per your calculation but I wonder why if I refer to page 13 of the Q4 report, it is reported that the weighted average number of shares is 126 mil shares only.
ckwan11d, yes your explanation makes sense. In other words, got to exercise caution when calculating the PE. Rather than use the weighted number of shares, should calculate out the number of shares post bonus issue in the valuation. In this case Kawan food PE is about 16x which is not cheap at all
KUALA LUMPUR: Kawan Food’s share price rose to a high of RM2.58 on Friday after CIMB Equities Research initiated coverage of the frozen food producer with a target price of RM3.65.
At 3.55pm, it was up 12 sen to RM2.50. There were 1.75 million shares done at prices ranging from RM2.38 to RM2.58. The warrants rose 13 sen to RM1.51.
CIMB Research said Kawan is an exciting proxy for the F&B frozen foods market. The company, which invented the world’s first frozen roti paratha, is looking to launch more products once its new factory becomes fully operational in 2016.
Kawan is also a proxy to the economic recovery in the US, its largest export market.
“We initiate coverage on Kawan with an Add rating. Our target price is based on a 10% discount to our 2016 F&B sector P/E of 25 times; the discount reflects its small market cap.
“Potential catalysts include securing the tax incentives for its new factory capex, and start of commercial production at this plant. More aggressive investors may wish to consider its warrants (7216 WA, exercise price 93 sen, expiring July 2016),” it said.
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....
Yan kin Tsong
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Posted by Yan kin Tsong > 2015-04-06 19:34 | Report Abuse
tjhldg....cheersssss...cukup kawan....huat ar!