KAWAN FOOD BHD
KLSE (MYR): KAWAN (7216)
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Last Price
1.65
Today's Change
-0.01 (0.60%)
Day's Change
1.65 - 1.66
Trading Volume
325,100
Entitlement
Upcoming
Happening
| Ann. Date | Ex Date | Type | Subject | Amount |
|---|
Discussions
4 people like this. Showing 50 of 1,576 comments
Kawan Food Bhd is likely to experience a surge in its share price following Malaysia’s Budget 2025 due to several key factors:
1. Increased Consumer Spending Power: The Budget includes pay increases for government employees, which is expected to drive higher consumer spending. This is particularly beneficial for food companies like Kawan, as their frozen food products are popular among Malaysian households. As disposable incomes rise, the demand for convenient food options such as Kawan’s roti, parathas, and frozen snacks is expected to increase, boosting the company’s sales and stock performance  .
2. Share Buybacks: Kawan Food has been actively buying back its shares, which often leads to a rise in stock prices due to reduced supply and increased investor confidence. These buybacks signal that the company sees value in its own stock, which could further propel prices upward .
3. Global Market Expansion and Efficient Operations: Kawan Food has been expanding into new markets, including South America, which is expected to contribute to its growth. Additionally, the company’s adoption of digitalization and efficiency-boosting initiatives under Industry 4.0 helps reduce costs and reliance on manual labor, improving margins and profitability .
Overall, these factors, along with positive market sentiment, suggest a strong potential for Kawan Food’s stock to rise in the wake of Budget 2025.
2 months ago
Kawan Food Bhd has strong potential in the frozen food market, particularly for its flagship product, roti canai, both in Malaysia and for export. The company’s success is driven by several factors that suggest its sales could double or even triple in the coming years:
1. Growing Demand for Convenient Food: With consumers increasingly seeking convenient, ready-to-cook meals, Kawan Food’s frozen products, including roti canai, paratha, and other flatbreads, are well-positioned to capture this trend. The rise in demand for easy-to-prepare meals, especially during and post-pandemic, has boosted the frozen food segment globally.
2. Export Opportunities: Kawan Food has a strong presence in international markets, with exports globally. Its products, especially roti canai, are gaining popularity among expatriates, as well as consumers looking for ethnic food options. With expanding global demand for Halal and Asian foods, Kawan Food can tap into these markets more aggressively, especially in North America, Europe, and the Middle East.
3. Capacity Expansion: The company has been investing in expanding its production facilities. For instance, Kawan Food opened a new factory in Pulau Indah, which significantly increases its production capacity, allowing it to meet growing demand both domestically and internationally.
4. Rising Health Awareness: Kawan is capitalizing on health trends by offering healthier frozen options, such as whole wheat and multigrain products. As consumers look for healthier alternatives, this diversification could drive higher sales.
5. Strong Brand and Market Positioning: Kawan’s brand is well-established, especially in the roti canai segment, where it holds a leadership position. This reputation for quality gives it a competitive advantage as it looks to expand further.
In summary, Kawan Food’s investment in capacity, strong international presence, and alignment with consumer trends in convenience and health food could lead to substantial sales growth  .
2 months ago
Kawan Food Bhd could indeed become a takeover target for a larger food conglomerate for several reasons:
1. Market Leadership: Kawan Food holds a dominant position in the frozen food segment, especially with its popular products like roti canai and paratha. Its strong brand recognition in both domestic and international markets makes it an attractive acquisition for companies looking to enter or expand in this space.
2. Growth in the Frozen Food Sector: The frozen food market is rapidly growing, driven by increasing demand for convenient, ready-to-cook meals. A larger food conglomerate could leverage Kawan’s established production and distribution networks to further scale operations and capture this growth opportunity.
3. Export Potential: Kawan Food has significant export reach, with a presence globally. For a multinational food conglomerate, acquiring Kawan would provide an immediate entry into these markets and help them capitalize on the growing demand for Halal and Asian frozen food products in regions like North America, Europe, and the Middle East.
4. Strong Production Capacity: With its new, state-of-the-art manufacturing facility, Kawan Food is well-equipped to handle larger production volumes. This infrastructure would be attractive to a larger food company looking to quickly expand without having to build new facilities from scratch.
5. Healthy Financials and Brand Reputation: Kawan Food’s steady financial performance, strong cash flows, and reputation for quality products make it a low-risk, high-potential acquisition for a food conglomerate seeking growth in the frozen food sector.
Overall, Kawan Food’s established market position, growing international presence, and scalable operations would be very attractive to a larger food conglomerate looking to expand in the frozen and ethnic food segments.
2 months ago
Kawan Food Bhd’s stock is often rated as undervalued by analysts for several reasons:
1. Strong Fundamentals: Kawan Food has a solid track record of profitability and steady revenue growth, particularly due to its robust position in the frozen food market. Despite this, its stock price may not fully reflect the company’s earnings potential, leading to undervaluation.
2. Expansion Potential: The company has recently expanded its production capacity with a new facility and has significant opportunities for growth in both domestic and international markets. However, the market may not have fully priced in the long-term benefits of these expansions, especially in the export market, leaving the stock undervalued.
3. Growing Demand for Frozen Foods: There is a global increase in demand for convenience foods and frozen food products, trends that benefit Kawan Food. Analysts may believe that the market is underestimating the company’s potential to capitalize on these growing trends, particularly in the ethnic food and Halal food segments.
4. Healthy Financial Position: Kawan Food maintains strong financial health with low debt levels and good cash flow, making it an attractive investment. Despite these positives, investor sentiment may still lag behind, leading analysts to consider the stock undervalued.
5. Market Sentiment Lag: Often, smaller or niche companies like Kawan Food don’t get the same level of attention from institutional investors as larger firms. This lack of attention can result in a stock price that doesn’t reflect the company’s true intrinsic value, even when its financial performance is solid.
Thus, Kawan Food’s combination of growth potential, strong fundamentals, and market opportunities make it a potential target for being undervalued by analysts, who see its stock as trading below its true worth.
2 months ago
Kawan Food Bhd could benefit from the increase in the minimum salary to RM1,700 in Malaysia for several reasons:
1. **Increased Consumer Spending**: As minimum wages rise, consumers typically have more disposable income, which can lead to increased spending on food products, including those offered by Kawan Food.
2. **Higher Demand for Convenience Foods**: With more disposable income, consumers may opt for convenient food options, such as frozen and ready-to-eat products, which Kawan specializes in.
3. **Expanded Market Reach**: The increase in minimum wage may allow more households to afford a broader range of food products, potentially expanding Kawan's market reach.
4. **Improved Workforce Morale**: A higher minimum wage can lead to improved employee morale and productivity, which can enhance the company’s operational efficiency.
5. **Positive Investor Sentiment**: The anticipated increase in sales and profitability can lead to positive sentiment among investors, potentially driving the company’s stock price higher.
6. **Competitive Advantage**: If Kawan Food can effectively capitalize on the changing spending patterns, it may gain a competitive advantage over peers who may not adapt as quickly.
In summary, Kawan Food Bhd stands to benefit from the increase in minimum salary, as it could lead to higher consumer spending, greater demand for their products, and overall positive impacts on the company's performance.
1 month ago
Philip ( buy what you understand)
Good123, do you eat mamak fresh roti canai more or do you eat kawan frozen roti canai more per month?
1 month ago
Eating frozen roti canai, like the ones from brands like Kawan, has become more popular for a few reasons, even though it may not be exactly the same as freshly made roti canai from a mamak stall.
1. Convenience
With frozen roti canai, you can have a warm, crispy, flaky piece of bread in just a few minutes without leaving home. For busy schedules or when you don’t feel like going out, this convenience is unbeatable. Fresh mamak roti canai is only available if you go to a mamak shop.
2. Consistency in Quality
Frozen roti canai is factory-made and standardized, so you know what to expect every time. At mamak stalls, quality can vary a lot depending on the cook or location.
3. Cost-Effectiveness Over Time
Buying a pack of frozen roti canai can be more economical. Once you buy in bulk, each piece tends to cost less than what you’d pay for one at the mamak. Plus, it saves you travel costs if you’re ordering in.
4. Health and Hygiene
Some people prefer frozen roti canai for hygiene reasons. Since it’s made in a controlled environment and you cook it yourself, you might feel more comfortable with its cleanliness compared to certain mamak stalls.
5. Rising Demand: Who Buys It?
More people, especially those with busy lifestyles or families, are opting for frozen roti canai. It’s commonly bought by households, especially families, and those living in urban areas who want the taste of roti canai without the hassle of dining out. Frozen options are also popular with Malaysians abroad who want a taste of home.
Does it Taste Better?
Frozen roti canai can be quite tasty, especially if cooked correctly, but for most people, it won’t quite match the freshness of one made at a mamak stall. Fresh roti has a unique warmth and slight chewiness that’s hard to replicate. However, if you’re comparing a perfectly cooked frozen one at home to a lower-quality roti from a random mamak, the frozen one might even come out on top!
In Summary
Many people are buying frozen roti canai because it’s convenient, reliable, affordable, and offers a taste close to the fresh option, if not exactly the same.
@@
Philip ( buy what you understand)
Good123, do you eat mamak fresh roti canai more or do you eat kawan frozen roti canai more per month?
1 day ago
RedOreo
who is buying frozen roti canai??? does it taste better then mamak?
7 hours ago
1 month ago
Kawan Food Berhad, established in the 1960s, has evolved into one of Malaysia’s leading exporters and largest manufacturers of frozen Asian food delicacies.  The company’s extensive product range includes parathas, chapatis, spring roll pastries, and various traditional Asian delicacies. 
Kawan Food’s commitment to quality and authenticity has enabled it to expand its market presence to 38 countries worldwide.  Notably, the United States stands as its largest export market, accounting for half of its total export revenue.  The company’s strategic focus on automation and innovation has further solidified its position in the global frozen food industry. 
1 month ago
Fabien _the efficient capital allocator
Kind of funny why some people make observation/assumption basing on own narrow's view instead of looking at the facts and figures. someone prefer to eat roti canai at mamak store does not mean somewhere in the world (which comprises a vast lands of people) other people behave the same (i.e. prefer to eat at mamak store). Typical flaw of sampling where you pick one small sample size to derive an accurate representation of a much larger population.
1 month ago
even in sabah & sarawak, mamak store is unpopular😜
@ Fabien _the efficient capital allocator
Kind of funny why some people make observation/assumption basing on own narrow's view instead of looking at the facts and figures. someone prefer to eat roti canai at mamak store does not mean somewhere in the world (which comprises a vast lands of people) other people behave the same (i.e. prefer to eat at mamak store). Typical flaw of sampling where you pick one small sample size to derive an accurate representation of a much larger population.
18 hours ago
1 month ago
Kawan Food Berhad is renowned for its diverse range of frozen food products beyond just roti canai. Their offerings include:
• Flatbreads: Parathas, chapatis, and naans.
• Pastries: Puff pastries and spring roll pastries.
• Oriental Buns (Pau): Varieties such as red bean buns and curry potato buns.
• Ready-to-Eat Meals: Options like chicken lasagna.
• Snacks: Sweet potato balls and hash browns.
These products are Halal certified, free from trans fats, and contain no added preservatives. 
Kawan Food Berhad is recognized as one of Malaysia’s leading exporters and the largest manufacturer of frozen Asian delicacies, offering a wide array of products to cater to diverse consumer preferences. 
1 month ago
dividend stock
KAWAN - Notice of Book Closure
KAWAN - Notice of Book Closure
ILC-21112024-00001
Second Interim Single Tier Dividend of 2.8 sen per ordinary share Kindly be
advised of the following : 1) The above Company's securities will be traded
and quoted "Ex - Dividend? as from: 04 Dec 2024 2) The last date of lodgment :
05 Dec 2024 3) Date Payable : 20 Dec 2024
MANAGER, REF. DATA MANAGEMENT
You are advised to read the entire contents of the announcement or attachment.
To read the entire contents of the announcement or attachment, please access
the Bursa website at http://www.bursamalaysia.com
21/11/2024 07:00 AM
Ref Code: 202411215100006
1 month ago
Monday up gila kot😁
TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONS KAWAN FOOD BERHAD ("KAWAN" OR "THE COMPANY") -JOINT VENTURE AGREEMENT ENTERED BETWEEN KG PASTRY MARKETING SDN BHD (A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY), SUN CHENG LENG, HUANG ER-WEN, GAN THIAM CHAI AND LIM HUN SOON @ DAVID LIM
KAWAN FOOD BERHAD
Type Announcement
Subject TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS)
NON RELATED PARTY TRANSACTIONS
Description KAWAN FOOD BERHAD ("KAWAN" OR "THE COMPANY")
-JOINT VENTURE AGREEMENT ENTERED BETWEEN KG PASTRY MARKETING SDN BHD (A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY), SUN CHENG LENG, HUANG ER-WEN, GAN THIAM CHAI AND LIM HUN SOON @ DAVID LIM
The Board of Directors of KAWAN wishes to announce that KG Pastry Marketing Sdn Bhd [Registration No. 200401014903 (653406-V)], a wholly-owned subsidiary of the Company and Sun Cheng Leng, Huang Er-Wen, Gan Thiam Chai and Lim Hun Soon @ David Lim had on 6 December 2024 entered into a Joint Venture Agreement via a special purpose vehicle ("SPV") to undertake the business of Information Technology (“IT”), involving the supply and distribution of IT equipment across the spectrum.
Please refer to the attachment for further details.
This announcement is dated 6 December 2024.
2 weeks ago
You better ask their mamak ceo from singapura aged 60++++
@ Philip ( buy what you understand)
Good123, do you eat mamak fresh roti canai more or do you eat kawan frozen roti canai more per month?
1 month ago
2 weeks ago
Back to rm2+++ hopefully
Kawan Food enters JV in IT sector with acquisition of Regaltech Automation
The new venture aims to capitalize on RA’s extensive experience in engineering services and industrial automation, alongside its recent agency and distributorship agreement with Super Micro Computer, Inc.
2 weeks ago
From roti planta to AI sector , really dont know how to link together !maybe share price also like roti planta ??? 🤣🤣🤣🤣
2 weeks ago
If you try the frozen R. Canai of Kawan, you will find its taste is above average comparing to those from the ordinary stalls. Nevertheless, one thing I can assure you that its taste is much better than rotai canai from Breakfast at Starhill Cafe B. Bintang.
2 weeks ago
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 week ago
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
1 week ago
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.
1 week ago
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%
1 week ago
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)
1 week ago
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.
1 week ago
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%
1 week ago
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.
1 week ago
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
1 week ago
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
1 week ago
kawan is hopeless takda young talents using a retired mamak from spore jadi ceo ... 60+++ boleh masuk old folk dah.... hahaha
1 week ago
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.
1 week ago
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.
1 week ago
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.
1 week ago
Mau buat IT biz, mamak ceo retiree tua Dari spore . pasti Kantoi. Mamak tahu roti canai je, dah 60+++ Tak celik IT pulak mampuslah
1 week ago
Do what founders of adidas and puma did, split and do own biz... better to avoid internal fight after the seniors pass away.
@dawchok
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.
1 week ago
1 day ago
back to RM2 t0 RM3 ++ hehe
Kawan Food Berhad’s decision to diversify into the IT sector through its investment in Regaltech Automation Sdn Bhd (RA) appears to be a strategically wise choice for several reasons:
1. Strategic Diversification for Future Growth
Rationale: Diversification is a prudent strategy to mitigate risks associated with over-reliance on a single industry. While the frozen food business has provided Kawan Food with steady growth and cash flow, entering the high-potential IT sector opens avenues for long-term expansion.
Future Relevance: The IT industry, particularly in areas such as artificial intelligence (AI), data centers, and high-powered servers, is experiencing exponential growth. This positions Kawan Food to capitalize on emerging trends and secure its relevance in a rapidly evolving global economy.
2. Leveraging Existing Expertise in RA
RA’s established track record in server installation for data centers and its recent appointment as a distributor for Super Micro Computer Inc demonstrate that the SPV is not starting from scratch. Kawan Food’s partnership with experienced individuals, including its own leadership, further strengthens the venture.
This approach minimizes risks associated with entering an unfamiliar sector while leveraging expertise to scale the business efficiently.
3. Strong Financial Position to Support Expansion
Kawan Food’s solid balance sheet, with RM100 million in cash and negligible debt, provides it with a significant cushion to fund this diversification without jeopardizing its financial stability.
4. Enhancing Shareholder Value in the Long Term
While investors may initially focus on Kawan Food’s steady dividends from the food sector, diversification into IT could provide higher returns over the long term. As RA scales its operations, Kawan Food’s 51% stake positions it to reap the benefits of future profitability.
The move aligns with modern investor expectations for innovation and adaptation, which could enhance the company’s appeal to a broader investor base.
5. Maintaining Core Business Stability
Importantly, Kawan Food is not abandoning its core business but using its strength in frozen food to support calculated diversification. This ensures that the steady dividends and dependable performance that investors value remain intact.
1 day ago
Justifying the hiring of a younger or local CEO over a foreigner over 60 for Kawan Food Berhad can also be supported with several strong arguments. Hiring a younger or local CEO for Kawan Food Berhad offers several advantages. A local CEO has a better understanding of Malaysia's market, culture, and regulations, enabling more effective decision-making and stronger community connections. They are also more adaptable to rapid market changes, embracing new technologies and trends. Younger CEOs may bring higher energy, long-term vision, and a focus on innovation, which is important for staying competitive. Additionally, they can build local talent and leadership pipelines, contributing to cost savings and supporting national workforce development. Overall, a younger or local CEO could drive Kawan Food’s growth, innovation, and long-term sustainability.
1 day ago
Younger CEO is better; here is a summary:
- Adaptability to Rapid Market Changes:
- Younger CEOs are more adaptable and embrace digital solutions and innovation.
- They navigate fast-paced business environments better.
- Understanding Local Market Needs:
- Local CEOs have deeper insights into Malaysian market conditions and consumer behaviors.
- They establish strong community connections and relationships with suppliers, distributors, and government bodies.
- Energy, Vision, and Long-Term Leadership:
- Younger CEOs have a long-term vision and are focused on growth and innovation.
- They bring higher energy and stamina to manage daily operations and strategies.
- Cost Considerations:
- Local CEOs may come with lower salary expectations and fewer relocation costs.
- Investing in local talent supports national workforce growth and aligns with CSR goals.
- Generational Perspective and Innovation:
- Younger CEOs are attuned to shifting consumer preferences and trends.
- They bring diverse and modern leadership styles that foster innovation and attract young talent.
- Local Talent and Knowledge of Local Regulatory Environment:
- Local CEOs understand Malaysia’s business laws and food safety regulations.
- They maintain strong relationships with government bodies and NGOs, enhancing reputation and communication.
- Youth and Energy in Company Culture:
- Younger CEOs attract a tech-savvy and younger workforce, ensuring progressive company culture.
- They align company culture with generational and cultural dynamics, driving innovation and customer satisfaction.
- Succession Planning and Long-Term Stability:
- Younger or local CEOs focus on developing succession plans and empowering young talent.
- They ensure the company’s future growth is led by individuals who understand the brand and market intimately.
By hiring a younger or local CEO, Kawan Food Berhad can benefit from adaptability, cost-effectiveness, market insight, leadership energy, cultural relevance, and long-term stability.
1 day ago
Better terminate this useless old singaporean ceo hehe
The appointment of Adam Pandian as CEO of Kawan Food in April 2023 has not led to the desired improvements in the company's performance. While he brings over 35 years of experience from various prestigious roles, including positions at Kellogg's and Procter & Gamble, his tenure has been marked by several challenges that have led to disappointing results for the company. Here’s a thorough analysis of the situation:
Underwhelming Sales Growth:
Despite a slight 2.22% increase in revenue for the first nine months of 2023 (RM225.77 million compared to RM220.88 million a year earlier), Kawan Food's sales growth has been far from impressive. In contrast to the record profits the company posted in FY2022, the net profit for 2023 showed a significant decline of 28.73%, falling to RM21.27 million from RM29.85 million in the previous year. The revenue growth has not been enough to offset the rising costs and expenses, which have led to a deterioration in profitability.
Factory Closure in China:
Another blow to Kawan Food under Pandian's leadership has been the closure of its factory in China. This decision signals operational challenges and potential difficulties in executing growth strategies in key international markets. The closure also raises questions about the company's long-term strategy for expansion, particularly in the Chinese market, which is often seen as crucial for the growth of food businesses.
Declining Share Price:
One of the most glaring indicators of the CEO's failure is the decline in Kawan Food's share price. Since Adam Pandian joined the company in April 2023, the stock has dropped by 19%, settling at RM1.65. This consistent drop in share price reflects a lack of investor confidence in the company's prospects under the current leadership. The share price is now significantly lower than the RM1.80 it closed at on December 29, 2023, which further suggests that investors are not optimistic about the company's future direction or Pandian’s ability to turn things around.
Management Strategy and Market Reaction:
Although Pandian has experience in transformation and turnaround strategies, the market has reacted negatively to his leadership. The lack of significant progress in both financial performance and operational improvements suggests that his strategies have not yet yielded the desired results. The factory closure, combined with the stagnation in sales growth and falling stock price, indicates that there may be deeper systemic issues that are not being addressed effectively.
Overall Performance:
In summary, despite Pandian’s extensive background in fast-moving consumer goods and his previous leadership roles, his appointment has not translated into the growth Kawan Food had hoped for. The failure to significantly grow sales, the closure of an important manufacturing facility in China, and the continued decline in share price suggest that his tenure has not been successful thus far. Investors and analysts will likely be looking for clear signs of improvement in the coming months to restore confidence in the company’s leadership and future prospects.
16 hours ago
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CS Tan
4.9 / 5.0
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
Higher min salary 1700 more people to buy its foods 😉
2 months ago