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Old Chang Kee
29-05-2017, 09:45 PM,
Post: #161
RE: Old Chang Kee
Why was there a need to revalue its factories down?

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14-08-2017, 07:46 PM, (This post was last modified: 14-08-2017, 07:47 PM by karlmarx.)
Post: #162
RE: Old Chang Kee
Over the years, profits has gone up, and down.

Share price has also gone up, but has yet to come down.

Looks like its tea time promo may have hurt profits, which has come down to $671k this quarter. Annualising this performance will get us about $2.5m for the full year.

At current market cap of about $100m, estimated p/e runs high at 40.

http://infopub.sgx.com/FileOpen/1Q2018%2...eID=466930

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13-11-2017, 10:18 PM,
Post: #163
RE: Old Chang Kee
Profits of $748k this quarter. More capex for expansion of factory.

http://infopub.sgx.com/FileOpen/2Q2018%2...eID=478162

More importantly, are people changing their diet and not eating as much deep fried snacks? I see OCK shifting towards selling easy-to-prepare meals (bee hoon, curry chicken, etc) and providing some seating. This increases its labour and rental overheads; not as efficient as before. It needs a higher volume of customers at these outlets to increase profitability.

Can OCK succeed as it tries to transform from a food stand to a 'restaurant?'

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14-11-2017, 10:31 AM, (This post was last modified: 14-11-2017, 10:33 AM by snowcap.)
Post: #164
RE: Old Chang Kee
(13-11-2017, 10:18 PM)karlmarx Wrote: Profits of $748k this quarter. More capex for expansion of factory.

http://infopub.sgx.com/FileOpen/2Q2018%2...eID=478162

More importantly, are people changing their diet and not eating as much deep fried snacks? I see OCK shifting towards selling easy-to-prepare meals (bee hoon, curry chicken, etc) and providing some seating. This increases its labour and rental overheads; not as efficient as before. It needs a higher volume of customers at these outlets to increase profitability.

Can OCK succeed as it tries to transform from a food stand to a 'restaurant?'

I tend to agree that there is a trend towards healthy eating, but imo, there will always be a demand for fried snacks. 

The fried snacks market roughly can be thought of in 3 segments: 1) very healthy eating. Avoids fried snacks or eats only under "no choice" circumstances, like when the boss buys for the office; 2a) the hard core foodie. live to eat. If have to give up food as enjoyment, then life is not worth living so he will do the heart bypass in order to continue eating his favourite cha kway teow, curry puff etc.; 2b) young and high output. people like NSF boys and high output athletes, can eat junk food without fear of health issues because they are young and they exercise a lot; and 3) the moderates. Likes good food, but with increasing health education and maybe a health scare, tries to lower the consumption of fried snacks to less frequent.  If your segment #2 is big enough you need not worry about OCK's fried snack revenue. The question is how big is segment #2?

To me I think "Curry Times" is a decent sit-down cafe offering. I have eaten there before and the food is ok.  It is a different proposition from the curry puff stands, not a substitute but a complement. I would not say OCK is trying to 'transform' from a snack stand to restaurant. I think they are trying to diversify their revenue streams.

My view is that the largest market segment is #3 (the moderates), but even then, they do not eat curry puff regularly (like once a week).  But everybody has to eat meals (breakfast, lunch, dinner) thrice daily - if OCK can capture a small percentage of this meal demand (which is more inelastic than snack demand), they have more stable recurring revenue.

Not vested.

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