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NVIDIA
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Tesla
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Lululemon Athletica
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Applovin
-- 272.380 
KAWAN FOOD is crazy about share buybacks.
#KAWAN achieved a new record in annual sales.
#Cash is also at a high level.
In our country, most consumer stocks have entered a bottleneck in recent years due to a lack of population dividend stimulation. However, in 2023, some food consumption companies have greatly improved their revenue through acquisitions and exports.
Among them, the companies that achieved record-high revenue include F&N, OFI, HUPSENG, ABLEGLOB, APOLLO, and KAWAN. Except for KAWAN, the stock prices of the other companies have all reached a new 52-week high. The gradual decrease in raw material prices is also a major reason for the improvement in the margins and profitability of these companies.
KAWAN is a well-known frozen food company. In 23Q3, it had a one-time loss of nearly RM4 million, including foreign exchange losses and inventory write-offs. Assuming these are deducted, the YoY profit in Q4 can grow by more than 30%.
In the past 3 years, KAWAN's total PAT was RM100.9 million, with an average annual PAT of RM33.6 million. Due to ample production capacity and low CAPEX, the company's cash has reached new highs every year after distributing dividends. Therefore, in 2023, the company conducted a RM22.9 million Share Buy Back, equivalent to 76% of the PAT in 2023, and will continue to conduct Share Buy Back in 2024.
Looking ahead, the company mentions that international transportation issues are gradually improving by 2024, and exports are expected to recover. It is expected that KAWAN will resume growth in 2024, with a growth rate of 5-10%, mainly depending on overseas demand. The only minor drawback is that the valuation is more than 20 times, so it won't be too cheap.
#Cash is also at a high level.
In our country, most consumer stocks have entered a bottleneck in recent years due to a lack of population dividend stimulation. However, in 2023, some food consumption companies have greatly improved their revenue through acquisitions and exports.
Among them, the companies that achieved record-high revenue include F&N, OFI, HUPSENG, ABLEGLOB, APOLLO, and KAWAN. Except for KAWAN, the stock prices of the other companies have all reached a new 52-week high. The gradual decrease in raw material prices is also a major reason for the improvement in the margins and profitability of these companies.
KAWAN is a well-known frozen food company. In 23Q3, it had a one-time loss of nearly RM4 million, including foreign exchange losses and inventory write-offs. Assuming these are deducted, the YoY profit in Q4 can grow by more than 30%.
In the past 3 years, KAWAN's total PAT was RM100.9 million, with an average annual PAT of RM33.6 million. Due to ample production capacity and low CAPEX, the company's cash has reached new highs every year after distributing dividends. Therefore, in 2023, the company conducted a RM22.9 million Share Buy Back, equivalent to 76% of the PAT in 2023, and will continue to conduct Share Buy Back in 2024.
Looking ahead, the company mentions that international transportation issues are gradually improving by 2024, and exports are expected to recover. It is expected that KAWAN will resume growth in 2024, with a growth rate of 5-10%, mainly depending on overseas demand. The only minor drawback is that the valuation is more than 20 times, so it won't be too cheap.
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