Reported Earnings • May 22
First quarter 2026 earnings released: EPS: RM0.003 (vs RM0.014 in 1Q 2025) First quarter 2026 results: EPS: RM0.003 (down from RM0.014 in 1Q 2025). Revenue: RM68.7m (down 2.6% from 1Q 2025). Net income: RM1.17m (down 76% from 1Q 2025). Profit margin: 1.7% (down from 6.8% in 1Q 2025). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 4.7% p.a. on average during the next 2 years, compared to a 3.5% growth forecast for the Food industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 24% per year, which means it has not declined as severely as earnings. Announcement • Apr 29
Kawan Food Berhad, Annual General Meeting, Jun 23, 2026 Kawan Food Berhad, Annual General Meeting, Jun 23, 2026, at 10:30 Singapore Standard Time. Location: lot 129351, jalan sungai pinang 4/19, taman perindustrian pulau indah, selangor halal hub, fasa 2c, 42920, pulau indah, selangor darul ehsan, Malaysia New Risk • Mar 05
New major risk - Revenue and earnings growth Earnings have declined by 6.8% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 6.8% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (3.5% net profit margin). Market cap is less than US$100m (RM278.5m market cap, or US$70.6m). New Risk • Mar 02
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 3.5% Last year net profit margin: 9.9% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (3.5% net profit margin). Market cap is less than US$100m (RM312.4m market cap, or US$79.8m). Major Estimate Revision • Dec 02
Consensus revenue estimates fall by 15% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from RM280.0m to RM237.7m. EPS estimate fell from RM0.067 to RM0.042 per share. Net income forecast to shrink 13% next year vs 2.4% growth forecast for Food industry in Malaysia . Consensus price target down from RM1.20 to RM1.07. Share price fell 3.5% to RM0.96 over the past week. Reported Earnings • Nov 26
Third quarter 2025 earnings released: EPS: RM0.005 (vs RM0.003 in 3Q 2024) Third quarter 2025 results: EPS: RM0.005 (up from RM0.003 in 3Q 2024). Revenue: RM59.5m (down 29% from 3Q 2024). Net income: RM1.65m (up 72% from 3Q 2024). Profit margin: 2.8% (up from 1.1% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 2.5% p.a. on average during the next 3 years, compared to a 2.9% growth forecast for the Food industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has fallen by 23% per year, which means it is performing significantly worse than earnings. Upcoming Dividend • Sep 10
Upcoming dividend of RM0.01 per share Eligible shareholders must have bought the stock before 17 September 2025. Payment date: 08 October 2025. Payout ratio is on the higher end at 91%, and the cash payout ratio is above 100%. Trailing yield: 9.0%. Within top quartile of Malaysian dividend payers (5.5%). Higher than average of industry peers (3.2%). Reported Earnings • Aug 31
Second quarter 2025 earnings released: EPS: RM0.01 (vs RM0.023 in 2Q 2024) Second quarter 2025 results: EPS: RM0.01 (down from RM0.023 in 2Q 2024). Revenue: RM60.2m (down 15% from 2Q 2024). Net income: RM3.42m (down 59% from 2Q 2024). Profit margin: 5.7% (down from 12% in 2Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to stay flat during the next 3 years compared to a 2.2% growth forecast for the Food industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has fallen by 22% per year, which means it is performing significantly worse than earnings. Buy Or Sell Opportunity • Jun 30
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 17% to RM1.20. The fair value is estimated to be RM1.51, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.6% over the last 3 years. Earnings per share has declined by 8.1%. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 54% in the next 2 years. Announcement • Jun 24
Kawan Food Berhad Announces the Retirement of Abdul Razak Bin Shakor as Non Independent and Non Executive Director, Effective 23 June 2025 Kawan Food Berhad announced the retirement of Mr. Abdul Razak Bin Shakor as Non-Executive Director, effective 23 June 2025. Age is 67. Directorate: Non Independent and Non Executive. Mr. Abdul Razak Bin Shakor has expressed his intention not to seek re-election as Director and accordingly, retired after the conclusion of the Twenty-First Annual General Meeting held on 23 June 2025. New Risk • May 30
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: RM425.0m (US$99.9m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 115% Cash payout ratio: 148% Minor Risk Market cap is less than US$100m (RM425.0m market cap, or US$99.9m). Buy Or Sell Opportunity • May 30
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 20% to RM1.25. The fair value is estimated to be RM1.58, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.6% over the last 3 years. Earnings per share has declined by 8.2%. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 54% in the next 2 years. Price Target Changed • May 28
Price target decreased by 14% to RM1.92 Down from RM2.22, the current price target is an average from 2 analysts. New target price is 47% above last closing price of RM1.30. Stock is down 27% over the past year. The company is forecast to post earnings per share of RM0.10 for next year compared to RM0.09 last year. Board Change • May 07
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Non-Independent & Non-Executive Director Neel Nagrecha was the last director to join the board, commencing their role in 2025. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Apr 29
Kawan Food Berhad, Annual General Meeting, Jun 23, 2025 Kawan Food Berhad, Annual General Meeting, Jun 23, 2025, at 10:30 Singapore Standard Time. Location: lot 129351, jalan sungai pinang 4/19, taman perindustrian pulau indah, selangor halal hub, fasa 2c, 42920 pulau indah, selangor darul ehsan, Malaysia Announcement • Apr 09
Kawan Food Berhad Announces Change of Group Chief Executive Officer, Effective April 9, 2025 Kawan Food Berhad announced appointment of Mr. Gan Thiam Chai as Group Executive Managing Director. Date of change is April 9, 2025. Age is 71. Qualifications: Form 5, Catholic High School. Working experience and occupation: Mr. Gan Thiam Chai ("Mr. TC Gan") was appointed to the Board on 1 June 2005 and served as Executive Chairman of Kawan Food Berhad from 1 March 2010 until his retirement on 16 October 2024. Upon his retirement, Mr. TC Gan was bestowed the title of Chairman Emeritus and stayed on as Adviser to provide guidance to support the continued growth of Kawan Food Berhad and its Group of Companies. Mr. TC Gan has over 30 years of experience in the food processing industry. After finishing school in 1971, he began his career as a Technical Assistant at Behn Meyer Industries Sdn. Bhd. He left the company in 1976 and, a year later, established Kian Guan Trading Co. In 1984, he founded Kawan Food Manufacturing Sdn. Bhd. ("KFM"). Under his leadership, KFM grew from a small business into an award-winning enterprise. His strong business acumen and extensive technical expertise in the food industry make him a valuable asset to the Group. He plays a key role in business planning and development, product research and innovation, and the modernization of food production through automation. Additionally, he is instrumental in shaping the Company's strategic direction and policies. Family relationship with any director and/or major shareholder of the listed issuer: Mr. Gan Thiam Chai is the father of Ms. Gan Ka Bien, the Executive Director, as well as Ms. Gan Ka Hui and Ms. Gan Ka Ooi, the Non-Independent Non-Executive Directors of Kawan Food Berhad. Mr. Gan Thiam Chai is the father in law of Mr. Yeap Chee Keong, the Chief Operating Officer of Kawan Food Berhad. Mr. Gan Thiam Chai is the spouse of Mdm. Kwan Sok Kay, both of them are deemed interested pursuant to Section 8 of the Companies Act 2016 by virtue of their substantial shareholdings in GFG (L) Foundation. Any conflict of interests that he/she has with the listed issuer: Related party transaction which has been disclosed in the Circular to Shareholders of the Company dated 30 April 2024. Details of any interest in the securities of the listed issuer or its subsidiaries: Direct interest - 1,021,000 ordinary shares in the Company, Indirect interest - 126,257,402 ordinary shares in the Company. Additionally, Mr. Adam Pandian is stepping down as Group Chief Executive Officer of the Company, effective 9 April 2025, to focus on personal interests. He has, however, agreed to continue as an Adviser to the Acting Group Managing Director, to provide strategic guidance. New Risk • Apr 08
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: RM435.2m (US$96.9m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (dividend per share is over 13x cash flows per share). Market cap is less than US$100m (RM435.2m market cap, or US$96.9m). Declared Dividend • Feb 26
Final dividend of RM0.02 announced Shareholders will receive a dividend of RM0.02. Ex-date: 10th March 2025 Payment date: 27th March 2025 Dividend yield will be 3.0%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (80% earnings payout ratio) but not covered by cash flows (dividend approximately 13x free cash flows). The dividend has increased by an average of 23% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 50% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 25
Full year 2024 earnings released: EPS: RM0.088 (vs RM0.084 in FY 2023) Full year 2024 results: EPS: RM0.088 (up from RM0.084 in FY 2023). Revenue: RM317.5m (up 11% from FY 2023). Net income: RM31.7m (up 5.3% from FY 2023). Profit margin: 10.0% (in line with FY 2023). Revenue is forecast to grow 6.7% p.a. on average during the next 2 years, compared to a 4.1% growth forecast for the Food industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 1% per year. Upcoming Dividend • Nov 27
Upcoming dividend of RM0.028 per share Eligible shareholders must have bought the stock before 04 December 2024. Payment date: 20 December 2024. Payout ratio is a comfortable 56% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Malaysian dividend payers (4.9%). In line with average of industry peers (2.7%). Reported Earnings • Nov 21
Third quarter 2024 earnings released: EPS: RM0.003 (vs RM0.021 in 3Q 2023) Third quarter 2024 results: EPS: RM0.003 (down from RM0.021 in 3Q 2023). Revenue: RM83.8m (up 5.8% from 3Q 2023). Net income: RM959.0k (down 88% from 3Q 2023). Profit margin: 1.1% (down from 9.7% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the Food industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has fallen by 1% per year. Reported Earnings • Aug 21
Second quarter 2024 earnings released: EPS: RM0.023 (vs RM0.016 in 2Q 2023) Second quarter 2024 results: EPS: RM0.023 (up from RM0.016 in 2Q 2023). Revenue: RM71.1m (up 5.4% from 2Q 2023). Net income: RM8.41m (up 48% from 2Q 2023). Profit margin: 12% (up from 8.5% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 3.5% growth forecast for the Food industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has fallen by 2% per year. Reported Earnings • May 18
First quarter 2024 earnings released: EPS: RM0.025 (vs RM0.022 in 1Q 2023) First quarter 2024 results: EPS: RM0.025 (up from RM0.022 in 1Q 2023). Revenue: RM80.6m (up 1.9% from 1Q 2023). Net income: RM9.22m (up 17% from 1Q 2023). Profit margin: 11% (up from 10.0% in 1Q 2023). Revenue is forecast to grow 8.0% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Food industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has fallen by 2% per year. Announcement • May 01
Kawan Food Berhad, Annual General Meeting, Jun 26, 2024 Kawan Food Berhad, Annual General Meeting, Jun 26, 2024, at 10:30 Singapore Standard Time. Agenda: To receive the Audited Financial Statements for the financial year ended 31 December 2023 together with the Reports of the Directors' and Auditors' thereon; to approve the Directors' fees and benefits payable to the Directors of the Company of up to RM1,253,000.00 for the period from 27 June 2024 until the conclusion of the Twenty-First AGM; to re-elect the Directors who are retiring under Clause 115(1) of the Constitution of the Company; to re-appoint RSM Malaysia PLT as Auditors of the Company and to authorise the Directors to fix their remuneration; and to consider other matters. Upcoming Dividend • Mar 13
Upcoming dividend of RM0.042 per share Eligible shareholders must have bought the stock before 20 March 2024. Payment date: 02 April 2024. Payout ratio is a comfortable 43% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Malaysian dividend payers (4.7%). Lower than average of industry peers (2.7%). Declared Dividend • Mar 08
Dividend increased to RM0.042 Dividend of RM0.042 is 17% higher than last year. Ex-date: 20th March 2024 Payment date: 2nd April 2024 Dividend yield will be 2.3%, which is lower than the industry average of 2.9%. Sustainability & Growth Dividend is well covered by both earnings (43% earnings payout ratio) and cash flows (25% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 38% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 24
Full year 2023 earnings released: EPS: RM0.084 (vs RM0.11 in FY 2022) Full year 2023 results: EPS: RM0.084 (down from RM0.11 in FY 2022). Revenue: RM287.2m (down 2.1% from FY 2022). Net income: RM30.1m (down 22% from FY 2022). Profit margin: 11% (down from 13% in FY 2022). Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 3.9% growth forecast for the Food industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Announcement • Feb 22
Kawan Food Berhad Declares Interim Single Tier Dividend in Respect of the Financial Year Ending 31 December 2024 The Board of Directors of Kawan Food Berhad declared an Interim Single Tier Dividend of 4.2 sen per ordinary share in respect of the financial year ending 31 December 2024. The entitlement and payment date will be determined and announced at a later date. Announcement • Dec 29
Kawan Food Berhad Appoints Adam Pandian as Group Chief Executive Officer, effective 01 January 2024 Kawan Food Berhad appointed Mr. Adam Pandian as Group Chief Executive Officer, at Age 61. Date of change is 01 January 2024. Qualifications includes Degree in Bachelor of Business Administration from National University of Singapore. Working experience and occupation: Mr. Adam joined Kawan Food Berhad Group of companies ("Kawan Group") as Advisor to Executive Chairman and Head of Transformation.He has more than 35 years management experience in commercial, supply chain and corporate roles, developing and implementing transformation strategies across various industries and organizations with a foundation in fast-moving consumer goods. He started his career in Procter & Gamble in brand management, he moved on to several senior positions including Account Director for Leo Burnett, Regional Account Director for Saatchi & Saatchi, General Manager and Commercial Director for Keebler, and as Managing Director ("MD") for Greater China and Southeast Asia for Kellogg.Prior to joining Kawan Group in April 2023, he held Chief Operating Officer roles in various divisions within the Hap Seng Group as well as corporate roles within the Group MDs office where he served in change management, business turnarounds and driving group synergy across operating divisions. Reported Earnings • Nov 23
Third quarter 2023 earnings released: EPS: RM0.022 (vs RM0.029 in 3Q 2022) Third quarter 2023 results: EPS: RM0.022 (down from RM0.029 in 3Q 2022). Revenue: RM79.2m (up 10% from 3Q 2022). Net income: RM7.69m (down 26% from 3Q 2022). Profit margin: 9.7% (down from 14% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 2.1% growth forecast for the Food industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Major Estimate Revision • Aug 29
Consensus revenue estimates fall by 10% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from RM335.9m to RM301.3m. EPS estimate fell from RM0.117 to RM0.085 per share. Net income forecast to grow 3.7% next year vs 4.3% growth forecast for Food industry in Malaysia. Consensus price target down from RM2.54 to RM2.00. Share price fell 6.5% to RM1.73 over the past week. Price Target Changed • Aug 23
Price target decreased by 11% to RM2.34 Down from RM2.63, the current price target is an average from 3 analysts. New target price is 36% above last closing price of RM1.72. Stock is down 17% over the past year. The company is forecast to post earnings per share of RM0.11 for next year compared to RM0.11 last year. Reported Earnings • Aug 23
Second quarter 2023 earnings released: EPS: RM0.016 (vs RM0.03 in 2Q 2022) Second quarter 2023 results: EPS: RM0.016 (down from RM0.03 in 2Q 2022). Revenue: RM67.5m (down 16% from 2Q 2022). Net income: RM5.70m (down 47% from 2Q 2022). Profit margin: 8.5% (down from 14% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 12% p.a. on average during the next 3 years, while revenues in the Food industry in Malaysia are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Announcement • Aug 03
Kawan Food Berhad Announces Cessation of Ng Hooi Khai as Chief Executive Officer Kawan Food Berhad announced the vacation of Office of Mr. Ng Hooi Khai, Age-61 Gender-Male, as Chief Executive Officer. Date of change is August 2, 2023. Reason: Office was vacated upon the expiration of his contract. Reported Earnings • May 19
First quarter 2023 earnings released: EPS: RM0.022 (vs RM0.024 in 1Q 2022) First quarter 2023 results: EPS: RM0.022 (down from RM0.024 in 1Q 2022). Revenue: RM79.1m (up 15% from 1Q 2022). Net income: RM7.88m (down 8.4% from 1Q 2022). Profit margin: 10.0% (down from 13% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.3% p.a. on average during the next 3 years, while revenues in the Food industry in Malaysia are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Buying Opportunity • May 19
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 7.7%. The fair value is estimated to be RM2.64, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.4% over the last 3 years. Earnings per share has grown by 21%. Revenue is forecast to grow by 25% in 2 years. Earnings is forecast to grow by 38% in the next 2 years. Buying Opportunity • Apr 13
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 8.3%. The fair value is estimated to be RM2.64, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.5% over the last 3 years. Earnings per share has grown by 27%. For the next 3 years, revenue is forecast to grow by 9.7% per annum. Earnings is also forecast to grow by 12% per annum over the same time period. Buying Opportunity • Mar 29
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 4.5%. The fair value is estimated to be RM2.64, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.5% over the last 3 years. Earnings per share has grown by 27%. For the next 3 years, revenue is forecast to grow by 9.7% per annum. Earnings is also forecast to grow by 12% per annum over the same time period. Buying Opportunity • Mar 14
Now 20% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be RM2.64, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.5% over the last 3 years. Earnings per share has grown by 27%. For the next 3 years, revenue is forecast to grow by 9.9% per annum. Earnings is also forecast to grow by 12% per annum over the same time period. Upcoming Dividend • Mar 06
Upcoming dividend of RM0.036 per share at 1.4% yield Eligible shareholders must have bought the stock before 13 March 2023. Payment date: 31 March 2023. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of Malaysian dividend payers (5.3%). Lower than average of industry peers (3.7%). Reported Earnings • Feb 23
Full year 2022 earnings released: EPS: RM0.11 (vs RM0.088 in FY 2021) Full year 2022 results: EPS: RM0.11 (up from RM0.088 in FY 2021). Revenue: RM293.2m (up 17% from FY 2021). Net income: RM38.5m (up 21% from FY 2021). Profit margin: 13% (in line with FY 2021). Revenue is forecast to grow 9.1% p.a. on average during the next 3 years, while revenues in the Food industry in Malaysia are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Feb 20
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 3.5%. The fair value is estimated to be RM2.75, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.6% over the last 3 years. Earnings per share has grown by 31%. Revenue is forecast to grow by 20% in 2 years. Earnings is forecast to grow by 27% in the next 2 years. Buying Opportunity • Jan 20
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 1.7%. The fair value is estimated to be RM2.87, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.6% over the last 3 years. Earnings per share has grown by 31%. Revenue is forecast to grow by 20% in 2 years. Earnings is forecast to grow by 27% in the next 2 years. Reported Earnings • Nov 23
Third quarter 2022 earnings released: EPS: RM0.029 (vs RM0.022 in 3Q 2021) Third quarter 2022 results: EPS: RM0.029 (up from RM0.022 in 3Q 2021). Revenue: RM71.8m (up 12% from 3Q 2021). Net income: RM10.4m (up 34% from 3Q 2021). Profit margin: 14% (up from 12% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.9% p.a. on average during the next 3 years, compared to a 2.4% decline forecast for the Food industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 4 experienced directors. 3 highly experienced directors. Non-Independent Executive Director Ka Gan was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 25
Second quarter 2022 earnings released Second quarter 2022 results: Revenue: RM80.4m (up 46% from 2Q 2021). Net income: RM10.8m (up 73% from 2Q 2021). Profit margin: 14% (up from 11% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 12% while the Food industry in Malaysia is not expected to grow. Valuation Update With 7 Day Price Move • Aug 17
Investor sentiment improved over the past week After last week's 16% share price gain to RM2.08, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 10x in the Food industry in Malaysia. Total returns to shareholders of 77% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at RM4.06 per share. Price Target Changed • Jun 21
Price target decreased to RM2.45 Down from RM2.65, the current price target is an average from 3 analysts. New target price is 47% above last closing price of RM1.67. Stock is down 17% over the past year. The company is forecast to post earnings per share of RM0.11 for next year compared to RM0.088 last year. Reported Earnings • May 24
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: RM0.024 (up from RM0.023 in 1Q 2021). Revenue: RM68.7m (up 5.1% from 1Q 2021). Net income: RM8.60m (up 4.9% from 1Q 2021). Profit margin: 13% (in line with 1Q 2021). Revenue missed analyst estimates by 6.9%. Earnings per share (EPS) exceeded analyst estimates by 1.3%. Over the next year, revenue is forecast to grow 19%, compared to a 6.3% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 4 experienced directors. 3 highly experienced directors. Non-Independent Executive Director Ka Gan was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Mar 08
Upcoming dividend of RM0.03 per share Eligible shareholders must have bought the stock before 15 March 2022. Payment date: 30 March 2022. Payout ratio is a comfortable 33% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Malaysian dividend payers (4.7%). Lower than average of industry peers (3.2%). Reported Earnings • Mar 02
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: EPS: RM0.09 (up from RM0.078 in FY 2020). Revenue: RM251.8m (down 1.2% from FY 2020). Net income: RM32.3m (up 15% from FY 2020). Profit margin: 13% (up from 11% in FY 2020). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 6.9%. Earnings per share (EPS) exceeded analyst estimates by 1.3%. Over the next year, revenue is forecast to grow 20%, compared to a 4.6% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Mar 01
Kawan Food Berhad Declares A Single Tier Interim Dividend for the Financial Year Ending 31 December 2022 Kawan Food Berhad declare a Single Tier Interim Dividend of 3.0 sen per ordinary share in respect of the financial year ending 31 December 2022. The entitlement and payment date will be determined and announced at a later date. Board Change • Jan 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 4 experienced directors. 3 highly experienced directors. Non-Independent Executive Director Ka Gan was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Dec 06
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 4 experienced directors. 3 highly experienced directors. Non-Independent Executive Director Ka Gan was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 18
Third quarter 2021 earnings released: EPS RM0.022 (vs RM0.017 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: RM64.0m (up 4.7% from 3Q 2020). Net income: RM7.74m (up 26% from 3Q 2020). Profit margin: 12% (up from 10% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 22
Second quarter 2021 earnings released: EPS RM0.017 (vs RM0.025 in 2Q 2020) The company reported a poor second quarter result with weaker earnings and revenues, although profit margins were flat. Second quarter 2021 results: Revenue: RM55.0m (down 31% from 2Q 2020). Net income: RM6.28m (down 29% from 2Q 2020). Profit margin: 11% (in line with 2Q 2020). Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Price Target Changed • Aug 12
Price target decreased to RM2.77 Down from RM3.05, the current price target is an average from 4 analysts. New target price is 47% above last closing price of RM1.89. Stock is down 19% over the past year. Price Target Changed • Jun 02
Price target decreased to RM3.05 Down from RM3.40, the current price target is an average from 3 analysts. New target price is 52% above last closing price of RM2.01. Stock is up 6.9% over the past year. Reported Earnings • Jun 02
First quarter 2021 earnings released: EPS RM0.023 (vs RM0.018 in 1Q 2020) The company reported a solid first quarter result with improved earnings and revenues, although profit margins were flat. First quarter 2021 results: Revenue: RM65.3m (up 22% from 1Q 2020). Net income: RM8.20m (up 24% from 1Q 2020). Profit margin: 13% (in line with 1Q 2020). Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 01
Upcoming Dividend of RM0.03 Per Share Will be paid on the 30th of March to those who are registered shareholders by the 8th of March. The trailing yield of 1.5% is below the top quartile of Malaysian dividend payers (4.3%), and is lower than industry peers (1.9%). Reported Earnings • Feb 20
Full year 2020 earnings released: EPS RM0.078 (vs RM0.034 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: RM254.7m (up 19% from FY 2019). Net income: RM28.0m (up 130% from FY 2019). Profit margin: 11% (up from 5.7% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 10% per year. Is New 90 Day High Low • Feb 08
New 90-day low: RM1.86 The company is down 21% from its price of RM2.35 on 10 November 2020. The Malaysian market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Food industry, which is down 2.0% over the same period. Is New 90 Day High Low • Jan 06
New 90-day low: RM1.94 The company is down 23% from its price of RM2.52 on 08 October 2020. The Malaysian market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Food industry, which is up 3.0% over the same period. Is New 90 Day High Low • Dec 14
New 90-day low: RM2.06 The company is down 14% from its price of RM2.39 on 15 September 2020. The Malaysian market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Food industry, which is up 2.0% over the same period. Major Estimate Revision • Dec 01
Analysts update estimates The 2020 consensus earning per share (EPS) estimate was lowered from RM0.10 to RM0.09. Revenue estimate was approximately flat at RM269.1m. Net income is expected to grow by 44% next year compared to 14% growth forecast for the Food industry in Malaysia. The consensus price target increased from RM3.40 to RM3.58. Share price is down by 7.8% to RM2.13 over the past week. Is New 90 Day High Low • Nov 25
New 90-day low: RM2.21 The company is down 18% from its price of RM2.69 on 27 August 2020. The Malaysian market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Food industry, which is flat over the same period. Reported Earnings • Nov 25
Third quarter 2020 earnings released: EPS RM0.017 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: RM61.1m (up 22% from 3Q 2019). Net income: RM6.16m (up 129% from 3Q 2019). Profit margin: 10% (up from 5.4% in 3Q 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 16% per year whereas the company’s share price has fallen by 11% per year. 
