OLD CHANG KEE | SGX:OCK FY26 Results – on track for faster growth

Summary:

Despite Old Chang Kee FY26 results showed record revenues of $103.5 mil, up 1.5%, earnings dipped 15.8% to $9.6 mil on the back of higher wage costs – SG&A expenses rose 3.7%, we would look past this and focus on the acceleration in growth in B2B revenues of 8.3%, also to a record $12.9 mil, and the opening of 3 new F&B outlets in Singapore.

These are in line with RHTC’s investment thesis for OCK for FY26-FY30 of faster growth in revenues, driven by a combination of the opening of new F&B outlets at a significantly faster pace than in the past and the higher growth in B2B sales.

We thus remain upbeat about the prospects for the growth in OCK’s revenues in FY27 and through to FY30 and reiterate our BUY call on OCK. Our intrinsic valuation of $1.61 (36% upside from 1 June’s share price of $1.18). It remains firmly grounded and may even prove conservative.