Old Chang Kee started as far back as 1956 with just a small stall in a coffee shop outside the former Rex cinema along McKenzie Road. Today it has grown to become one of the local successful company with 82 outlets widely spread across all areas of Singapore. One outlet in Australia, 9 outlets in Indonesia and 3 outlets in Malaysia.
As at 31 December 2015, the Group operated a total of 82 outlets in Singapore as compared to 79 outlets as at 31 December 2014. The Group’s signature puff products remained the major contributor to its revenue and accounted for approximately 31.5% of the Group’s revenue in 3Q2016, as compared to approximately 33.3% in 3Q2015.
Their revenue has also been growing continuously from the data gathered from the Singapore Exchange Financial result announcements as follows:
Cash on Hand of $18,816m which is well adequate /sufficient to cover the Bank loan of $7260m & 0.897m( base on 9M ended 31st Dec 2015). Basically it has enough cash to pay back the full amount of bank loans. In fact , we can say that the company has zero debts using the simply calculation of $18.816m less of $7260m & $0.897m = $11555.10m .
A stable and quite generous dividend of 3 cents was being declared for the past 2 years. At the current price of 67 cents, the yield is about 4.4% which is considered quite a good yield.
From TA point of view it has continued to trend lower after hitting the high of $1.03 on 27th Jan 2014 and gone down to touch the low of 63.5 cents on 15th Dec 2015.
The current price of 67 cents looks quite a good price to accumulate as it is implying a PE of about 15.4 times ( EPS of about 4.35cents). If the company is able to expand their business into China that might be another area of growing the company revenue going forward.
Pls do you own due diligent.
(trade base on your own decision)
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