Today, the group operates four brands: Old Chang Kee, Dip n Go, Curry Times and O’ My Darling.
Old Chang Kee, its original brand, serves curry puffs and hot finger food on the go. Dip n Go is an expansion of the hot finger food concept, offering burgers and an assortment of fried foods with a variety of dipping sauces. Curry Times is the group’s restaurant concept, with menu items ranging from curry rice to local favourites such as nasi lemak. O’ My Darling is the group’s catering brand, providing menu items from Old Chang Kee and Curry Times at casual gatherings or corporate events.
In total, Old Chang Kee manages over 80 outlets in Singapore and six outlets overseas across Australia, Malaysia, Indonesia and the UK. In 2024, the group crossed $100 million in sales, a milestone for a company that traces its humble beginnings to a single stall on Mackenzie Road.
The group’s stock has also come a long way since listing at 13.9 cents upon its IPO in 2008. As at July 22, the stock is trading at an all-time high of $1.07, or up 587.75%. Despite this, valuations are seemingly undemanding with a P/E ratio of 11.89, giving it a market cap of $129.9 million.
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Arguably, this is a small cap stock, which would likely not pop up on the radars of fund managers, even if they were to focus on local counters. Yet, it is a homegrown company that has gone from strength to strength, carried not only by its household brand but also its steadily improving earnings.
In the FY2025 ended March, its net profit climbed 17.4% y-o-y to $11.3 million, with revenue similarly improving to $102.0 million from $101.0 million in the same period last year.
The group’s net profit margin has also increased to 11.1% from 9.6% in the FY2024. Its balance sheet is healthy, with a net cash of $50.8 million and net debt of $18.8 million.
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Backed by earnings growth, the board declared a total dividend of two cents per share for FY2025, equivalent to a payout ratio of 21%.
Although defence and tech picks tend to hog investors’ interest, should Old Chang Kee continue to deliver, shareholders and investors alike will be more than pleased with the morsels provided by this stock, which has already drawn some international attention.
For one, it was among the 200 Asia Pacific companies included in Forbes Asia’s “Best under a billion 2024” list for public companies with annual sales under US$1 billion ($1.28 billion) and consistent top- and bottom-line growth.
While Old Chang Kee has typically been overlooked, analysts and research houses could be missing out on the group’s strong financial metrics.
The group is also actively seeking to diversify its revenue base through non-retail channels, such as business-to-business sales. It has been growing its retail presence, prioritising bustling transport hubs where footfall is high and customers favour speed and convenience.
With its heritage and continued share price appreciation, Old Chang Kee has thus far proved to be no puff of smoke.
If funds from the EQDP make their way into this stock, its future could become spicier.
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