Tuesday, 31 May 2011

Old Town: Will it get listed?

Old Town White Coffee is seeking approval for listing on 11 July! 

Its financial performance since 2007 looks good indeed.

Revenue (mil)25519413879
Net Profit (mil)32302111

Base solely on this result, though the profit growth in 2009-2010 slowed down which is a little concern, it can still be an IPO worth applying for.

Old Town's revenue are mainly from its cafe outlets (65%). The rest are from sales of beverage products. Currently it has 183 outlets in Malaysia, Singapore and Indonesia. It just started in Indonesia in 2011. The outlets are either fully owned, partially owned or franchised. The beverage products are exported to countries like US, UK, Canada, China, Japan, Taiwan, Singapore, Indonesia, Thailand & Philippines. Sounds not bad.

    The origin of white coffee

Old Town White Coffee cafe outlets started since 2005. What do you think about the sustainability of its business? I'm not a coffee lover. I do like its Hazelnut coffee, ice-cream toast and the signature butter-kaya toast. Personally I think the food is quite expensive and not very fresh, and they use all foreign workers. In Bukit Mertajam, I can see that there are not many people in the day time but there are quite a lot of them at night.

Initially I thought their business is going downhill but the financial results here say otherwise. Perhaps I need to go to bigger city to have a look. Will Old Town cafe expand to HK, Taiwan or China? Food & Beverage industry is very competitive. Do you think Old Town has the edge to prevail?


  1. have a feeling this is a con man counter, just like Bj Retail(do u think 7-eleven business so good until the revenue was so high before it was taken private???)

    take a look at oversea listed last year, food damn expensive but Q1 result only show net profit about 1 million......someboby must have done something to the account...

    anyway, this is jus a guts feeling, i didn'tread their ipo prospectus, but seeing oldtown business not that reali good in PJ and Ipoh.....

  2. take a look at tongher...

    cyclical stock that will benefit fr recovery.....

    revenue and eps improved with the recovery, restarted dividend payment, director buying...

    the only shortfall is thi volume....

    any comment....??

  3. Seems like u like stocks that directors are actively buying!

    B4 that I've never pay attention to Tongher. Heard like it's selling beans/nuts but it's actually selling bolts/nuts. Haha.

    At a glance the business is improving dramatically. I agree that its business will continue to improve along with economy. Directors are also very actively buying the shares. Yesterday the share price already jumped!

    What I'm concern about Tongher is the balance sheet. I always like to see how's a company's cash position. From 2009 to 2010, the cash reduced from 155m to 76m, and the current debt increase from 31m to 108m! Do u know what's happening? Is it because of some big investment? However, if in a recovering environment this shouldn't be a big problem and may be actually good debt.

  4. ya, i like those fundamentally sound company with director's giving confidence by buying bac their company share, they r the one who knows the company best, insider always make the most profit compared to us......we can't beat them, so follow them lo...stand on ntheir shoulder and fly (or sink) together....

    buying these kind of stock can sleep at night, learn fr the crisis dy....

    tongher proposed to give 8 cents dividend, 80/2600, roughly 3% return at this price, if market go against me...worse come to worst, take it as FD lo.....

    anyway, i haven't buy in yet...still hunting for better one(if any)....hehe

  5. jus wonder where u got all these data for all the article u wrote...impressive!

  6. From annual report, last year Tongher bought 51% stake in an aluminium company, I think that's the reason of the ballooning debt. But this may be a good move.

    Thanks for the compliment :) I got all the data mainly from the company official website, my broker public bank or search the web. The share price chart is from chartnexus. All news I get are considered outdated. U know any channel with insider news?

    I just write whatever comes into my eyes or my mind. I have the priviledge to write many of them bcoz I generally sit infront of computer from 8am-5pm, sometimes even extend til 10pm!

    In a real life, I must admit that I'm not a good stock market investor. Have to learn & change strategy a bit.