Old Chang Kee

[chang]

What is M? Do you mean M_c?

I noticed that the OCK outlet near my place usually is able to clear most of their stock by the end of the day. On a few occassions when I feel like having a OCK chicken wing just before closing time, it is usually sold out. What's left is usually the curry puff. Not much wastage which is good.

yes, but that was few years ago, i think, when they invited the public for a visit. they proudly told us is 3 days, they sounded that they were amongst the earliest in the industry to change. i immediately took this opportunity to tell my daughter beside me to cut down junk food.

in the website, http://www.mcdonalds.com.sg/opendoors/faq.html :
The oil is filtered every day and we change the oil in the fryer at least once a week. Oil is checked regularly to ensure the quality of food cooked is not compromised.

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I have no way of verifying this but I'm wondering if OCK charged different prices for their products at different outlet. I'm saying this becos I'm sure I have paid different price for their curry puff at different outlets. Or maybe it was just a crossover in the increase of their price. But if they are able to practice price differential at different outlets, then effectively they can pass some of their overhead to consumers. I rem they have an outlet along Orchard Rd (not sure if still there or not). I'm sure the overhead for that place cannot be cheaper than some of their sub-urban mall outlets. (Scratch that. I guess the price is standardise since it clearly listed on their website )

The best thing that OCK is doing well is that they have been able to maintain the consistency and quality of their products despite opening so many outlets. That is very important because I expect all OCK puffs to taste the same regardless of where I bought them. Sadly when good food start branching out, the quality drops. eg.高记酿豆腐面 (Gao Ji Yong Tau Fu)

They have also shown creativity in coming out with new flavours (sardine, chicken mushroom, black pepper - my favourite but not selling anymore) and promotions (giant fishballs to tie in with world cup). I also noticed that the outlet at Compass Point doing roaring business in the morning selling mee siam, nasi lemak, and other assorted kuehs. I dun know if this is standard for all other outlets.

There are rooms for improvement. Everything I see a Mr Bean outlet next to OCK, I keep wondering to myself why the two owners dun work something out to create a synergy between the 2 businesses. In fact Mr Bean soyabean drink is a perfect compliment for OCK snacks. It does not stretch the imagination for a Value Add Menu to be worked out (ala Macdonalds).

correct. no more 高记酿豆腐 for me after few times disappointment.

[dydx]

Just took a look into OCK's latest FY10 (ended 31Dec10) AR which makes interesting reading.....
http://info.sgx.com/listprosp.nsf/07aed3...200225ebf/$FILE/Old%20Chang%20Kee%20AR%202010%20CD%20ROM.pdf

Revenue continues to rise, but profit is stalling because of perennial rising costs and operating expenses (mainly labour and retail rental), plus relatively high compensation (total >$1.1m in FY10) for the 2 EDs.

Despite the lower NP, a total $0.015/share in dividends (comprising a $0.01/share Final and a $0.005/share Special) for FY10 have been declared, likely with an added intention to encourage holders of the outstanding (as at 31Dec10) 27.536m warrants - convertible into new OCK shares at $0.10/warrant; expiry: 6Sep13 - to convert prematurely for the coming dividends. The conversion of the warrants will raise the outstanding issued shares from 93.884m (as at 31Dec10) to potentially 121.42m, and will depress OCK's NAV/share - at least temporarily.

[koh_52]

From my observations...daily basis..... few of the outlets that as tenants......my take
OCK and Cheers are quite similar in business turn over...soso , not much crowd ..though good location but pay high rental, bottom-line eaten away their profit.

I think Challenger business is much better than OCK...

So i will not touch OCK.

[karlmarx]

i actually like ock's business alot. it is something i will like to own in total and for the rest of my investing horizon. i wouldn't say this for challenger because computer hardware/accessories isn't something i can say is stable in the next 5 to 10 yrs. i know alot of folks here like challenger but i got to say, i don't see any 'moat' in the business. sim lim, funan, and IT shows every quarter are its competitors. and these guys still dominate the IT scene. it's tough. though i think its management deserves credit for its consistent profits; it's doing quite well in a tough environment.

while expenses for ock are no doubt a concern. its cash flow is healthy. even if it only achieves 1% profit growth per yr, i will be more than satisfied, mainly because demand for its product is most predictable. plus it has retailing and branding advantages. but of course, provided the price is right. going by the last traded price, i'd say it's still too exp as a value proposition.

[juno.tay]

I like both Old Chang Kee & Challenger a lot haha

I guess OCK has some advantages has it has already built a brand name that is well recognized by Singaporeans.

I like Challenger too for many of the reasons already stated by others.

However, both aren't really the bargain buys like karlmax says so they have to be relegated to my "to watch list"

[pianist]

i was reading its annual report and noted that Mr Koh Wee Meng, the founder of Fragrance Group, another listed property counter, was listed as no. 6 of the 20 largest shareholders. Apparently, it seems like Mr Koh, himself likes the curry puffs from Old Chang kee.

[VestedInterest]

Anyone knows how their Piekia, Take 5 and Mushroom outlets doing?

[brattzz]

i like curry puffs with cold soya bean drink...

both together is $1.20+$1.20 = $2.40...

Food court eat a bowl of noodles soup is $3.50...

[VestedInterest]

Hmmm....an outlet in Perth where there is a large S'porean and Msian community. Think it's a good move for all those home-sick people, who miss their curry puffs, fishballs, spring rolls, etc.

[brattzz]

ock to perth!

melbourne coming up soon?