As the Singapore F& B scene becomes increasingly dominated by swathes of Chinese restaurant chains throughout the island, Old Chang Kee has endearingly stood strong as an &ldquo old faithful&rdquo among locals.

 

First established in 1956, Old Chang Kee is known for its snacks, especially its curry puff &mdash a puff pastry filled with curry-spiced chicken, potato and egg.

 

Today, the group operates four brands: Old Chang Kee, Dip n Go, Curry Times and O&rsquo 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&rsquo s restaurant concept, with menu items ranging from curry rice to local favourites such as nasi lemak. O&rsquo My Darling is the group&rsquo 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&rsquo 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.

 

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&rsquo 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.

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&rsquo 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&rsquo s &ldquo Best under a billion 2024&rdquo 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&rsquo 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.

 

They say good things come in small packages. Han Keen Juan took that literally and deep-fried it.

 

Han&rsquo s palm-sized curry puff didn&rsquo t just win over taste buds. It turned his company, Old Chang Kee, into a snack empire. In doing so, he also proved that even in a bite-sized market like Singapore, a well-cooked idea can scale and sizzle.

 

By most financial metrics, Old Chang Kee is a model of resilience. Much of that has to do with Singaporeans&rsquo love for all things deep-fried. Consider this: As a listed entity, Old Chang Kee has never been in the red, not even during the Covid pandemic (although government aid did help shore up its bottom line during the lockdown).

 

National campaigns advocating healthier eating have also done little to dent appetite for its time-tested treats. Remember the Health Promotion Board&rsquo s warning in 2011 that Singaporeans consume 60% more salt daily than they should? Or the Ministry of Health&rsquo s declaration of war on diabetes in 2016?

 

It&rsquo s no surprise that Old Chang Kee outlets are found everywhere in Singapore, its largest market by revenue. Since its trading debut on the Singapore Exchange(SGX) in 2008, the company has been fairly aggressive in increasing its store count. Even after shuttering a few over the years, due to factors like high rental and lower-than-expected footfall, it still has a sizeable chain of 80 outlets island-wide, compared to 54 in 2008.

 

Venturing overseas

But while it has generally done well in Singapore, its overseas forays have shown far less promise. Back in 2008, it had three outlets that it managed on its own in Chengdu, the capital city of China&rsquo s Sichuan province, and several in Jakarta and Manila under franchise agreements.

 

The plan then was to use part of the $3.3 million net proceeds from its IPO to open at least three more stores in China within two years. Malaysia, Thailand and Australia were also markets it had wanted to penetrate.

 

Fast forward to today, only Malaysia and Australia are in play for Old Chang Kee. The combined sales of both markets are negligible, though, accounting for not even 1% of its entire revenue of $102 million for FY2025 ended March 31.

 

Investor scoreboard

It may not be a darling of the stock market, but Old Chang Kee has delivered where it matters.

 

Earnings rose above the $10 million mark for the first time to $11.3 million in FY2025. That was a 17.4% increase from the previous year, underpinned by record revenue of $102 million. Its 11.8% return on assets in FY2025 is the highest in more than five years. Return on equity for each of the last two years was 20%, up from 15% in FY2023.

 

Old Chang Kee was one of seven Singapore firms that made it to Forbes&rsquo 2024 list of Asia-Pacific&rsquo s top 200 public companies with annual sales of not more than US$1 billion ($1.3 billion).

 

The company has no fixed dividend policy but shareholders do get something every year. It&rsquo s been paying 2 cents a share annually since FY2021. That&rsquo s a 21% payout based on its FY2025 earnings. Its biggest dividend, declared in FY2016, was 6 cents a share.

 

It has very little debt and, as at March 31 this year, had net cash of $50.8 million, which works out to 41.8 cents per share. That makes up nearly 90% of its latest reported net asset value of 47 cents per share and amounts to 43% of the stock&rsquo s 52-week high of 97 cents.

 

A pet peeve among some investors, however, is the company&rsquo s small free float of barely 15%. With so few shares to go around, anyone hoping for a bigger bite often goes away hungry.

 

Han, Old Chang Kee&rsquo s founder and executive chairman, owns a direct stake of 58.6%. His wife, Ng Choi Hong, owns 7.3%. Far East Organization and the family of the late Ng Teng Fong, who founded the property conglomerate, are also substantial shareholders, with a combined stake of 12%.

 

What&rsquo s next?

Old Chang Kee&rsquo s substantial cash pile gives it the firepower to scout for acquisitions &mdash a move it has hinted at as it looks beyond organic growth.

 

At its AGM in July last year, it said the cash will be handy as it is regularly approached by certain parties to explore mergers and acquisitions. It may also use the funds to expand its factories. It&rsquo s also looking at expanding into B2B sales to diversify its revenue stream.

 

Whatever the intent, it probably won&rsquo t hurt Old Chang Kee to take on some debt to fund expansion, given the strength of its balance sheet. Investors may even be willing to accommodate an equity raise, considering its last cash call was in 2010, when it pulled in a modest $1.2 million through a sale of warrants.

 

That said, will it join the growing list of companies delisting from SGX? After all, it hasn&rsquo t raised any funds from the market for more than 10 years. And it probably won&rsquo t cost the controlling shareholders an arm and a leg to buy out the rest of the company they don&rsquo t already own, since its current free float is not far off from the mandatory 10% baseline.

 

With its decent earnings and returns on equity, coupled with a war chest ready for expansion, Old Chang Kee has been quietly building a case over the years as one of the more reliable value creators on SGX. Add in the potential for M& As and B2B growth, and this snack giant could be just getting started. For investors, the only real frustration is how hard it is to buy more.

 

Old Chang Kee has posted earnings of $6.2 million for its 1HFY2025 ended September, 42.3% higher y-o-y.

 

Revenue grew 3.2% y-o-y to $51.83 million, mainly due to higher retail and non-retail sales.

 

Gross profit margin increased by 3% to 69.5% in 1HFY2025, largely driven by improved food suppliers cost management resulting in the reduction in cost of sales effective product pricing management and reduction in utilities and product staff costs as a percentage of revenue.

 

Earnings per share stood at 5.12 cents, compared to 3.61 cents in 1HFY2024.

 

The company has declared an interim dividend of 1 cent per share, payable on December 20.

 

To navigate the period of sustained inflation, Old Chang Kee 5ML will maintain its current strategies, focusing on reducing operating costs, enhancing gross margins and optimising operations to manage manpower constraints. 

 

Additionally, the company is actively pursuing non-retail revenue sources, such as business-to-business sales. 

For the full year, earnings rise 57.2 per cent to S$9.7 million with a final dividend of S$0.01

 

CURRY puff specialist Old Chang Kee on Thursday (May 30) posted a 50 per cent rise in net profit to S$5.3 million for its second half ended March 2024, from S$3.5 million in the same period a year ago.

 

Revenue for the half-year rose 10 per cent to S$50.7 million, from S$46.1 million the year before, driven by higher retail, delivery, catering and non-retail sales.

 

Revenue from Old Chang Kee&rsquo s retail outlets increased by S$3.5 million or 8.3 per cent, due mainly to incremental revenue from new outlets and an increase in revenue from existing outlets. This was partially offset by a decrease in revenue from outlets which have closed. As at Mar 31, the group operated a total of 79 outlets in Singapore.

 

Meanwhile, its revenue from other services, such as delivery, catering and non-retail sales, climbed by S$1.1 million or 24.4 per cent. This was primarily due to higher delivery revenue, corporate catering orders and non-retail sales, arising from a continued pick-up in events organised in H2 FY2024.

 

Selling and distribution expenses rose 12.8 per cent to S$20.3 million, from S$18 million the year before. This was attributed to higher staff, advertising and promotion costs, depreciation of right-of-use assets, and turnover rental expenses during the period under review.

 

Earnings per share stood at S$0.0436 for the period, up from S$0.0291 a year ago.

 

For the full year ended March, net profit rose 57.2 per cent to S$9.7 million. Revenue was also up, climbing 12.4 per cent to S$101 million. Earnings per share stood at S$0.0797 for the full year, up from S$0.0507 the year before.

 

A final dividend of S$0.01 per share was declared, unchanged from the year-ago period.

 

Old Chang Kee noted that inflationary pressures have remained persistent, particularly for raw material and labour costs. Rental costs also remained elevated.

 

It added that the current manpower shortage in the retail sector remains &ldquo challenging&rdquo , while retail demand &ldquo looks subdued&rdquo in the near term.

 

&ldquo The group will continue with its current strategies to navigate this difficult period of sustained inflation,&rdquo it said. These include efforts to reduce operating costs, improve gross margins, rationalise the group&rsquo s operations to overcome manpower shortages, and look for more non-retail revenue streams, such as business-to-business sales.

 

In addition, the group will continue to look for opportunities to increase the number of outlets at strategic locations, such as high-traffic transport hubs. It will also explore possibilities for &ldquo synergistic business combinations&rdquo , as well as expanding its logistics and manufacturing facilities.

 

For the full year, Old Chang Kee&rsquo s net profit is up 8.4 per cent to S$6.2 million. 

CURRY puff specialist Old Chang Kee&rsquo s : 5ML 0% net profit rose 52.6 per cent to S$3.5 million for H2 ended Mar 31, thanks to higher sales.

 

The company on Monday (May 29) posted an 18.4 per cent increase in revenue for the half year to S$46.1 million, aided by higher sales across the retail, non-retail and catering segments, with the continued reopening of Singapore&rsquo s economy. This comes even as its number of Singapore outlets dropped to 79, from 83 as at end-March 2022.

 

Revenue from Old Chang Kee&rsquo s retail outlets rose by S$6.1 million or 17.2 per cent to S$41.5 million, thanks to stronger contributions from new and existing outlets. Non-outlet sales likewise rose by S$1.1 million to S$4.6 million, due to higher corporate catering orders, non-retail sales and events sales. This was offset by lower delivery sales.

 

It saw a 4.8 per cent increase in selling and distribution expenses to S$18 million, amid higher staff costs, outlets&rsquo utility expenses and rental expenses, and the absence of rental rebates.

 

Its other expenses increased by S$120,000, due to higher impairment for the amount due from its joint venture in the UK.

 

For the full year, Old Chang Kee&rsquo s net profit was up 8.4 per cent to S$6.2 million, while its revenue rose 15.9 per cent to S$89.8 million. The company declared a final dividend of one Singapore cent per share, unchanged from the year-ago period.

 

In commentary accompanying its results, Old Chang Kee explained that its number of outlets has reduced partly due to infrastructural developments at various locations, necessitating the closure of these outlets.

 

&ldquo Nevertheless, the group has and will continue with our efforts to drive revenue growth, improve gross margins and rationalise our operations to overcome manpower shortages, and seek more non-retail revenue streams during this inflationary period,&rdquo it said.

 

The company will also continue to look for opportunities to increase the number of outlets at key transport nodes.

CURRY puff maker Old Chang Kee on Monday (Nov 14) posted net profit of S$2.6 million for the six months ended September, down 22 per cent from S$3.4 million in the previous year.

 

The decline was mainly due to the absence of Job Support Scheme grants in H1 FY2023, which contributed to a S$3.4 million drop in other income to S$0.6 million.

 

H1 revenue grew 13.3 per cent to S$43.7 million, from S$38.5 million in the year-ago period, mainly due to higher retail, delivery and catering sales amid the reopening of Singapore&rsquo s economy.

 

Revenue from retail outlets increased by S$4.4 million or 12.4 per cent, mainly owing to incremental revenue from outlets that were temporarily closed in the prior period due to Covid-19, as well as higher revenue from existing outlets.

 

Revenue from other services, such as delivery and catering services, grew by S$0.8 million.

 

As at end-September, Old Chang Kee operated a total of 80 outlets in Singapore, down from 89 in the previous year.

 

The group said the reduction in the number of outlets was partly due to infrastructural developments at various locations, which necessitated the closure of these outlets. It added that it continues to look for opportunities to increase the number of outlets at key transport nodes.

 

Noting increased inflationary pressures, the group said it will continue with efforts to reduce operating costs, improve gross margins and rationalise operations to overcome manpower shortages.

 

The group has declared an interim dividend of S$0.01 per share for the period, payable on Dec 19.

 

Old Chang Kee reported revenue of $38.52 million for 1HFY2022 ended Sept 30, up $341,000 or 0.9% y-o-y.

This was mainly due to higher delivery and retail sales, partially offset by a decrease from catering sales, says the group on Nov 11. 

 

Profit before tax fell 45.4% y-o-y to $3.79 million for the period. The group&rsquo s gross profit margin decreased by 1.7% to 64.3% in 1H2022, mainly due to absence of economies of scale savings from the large-scale catering of packed meals to foreign workers dormitories. 

 

Old Chang Kee reported profit of $2.6 million for the 2HFY2021 ended March.

 

Earnings per share stood at 2.77 cents, down from 5.05 cents per share this time last year. 

The group has declared an interim dividend of 1.0 Singapore cent per ordinary share for the period, with a record date of Dec 3. 

 

As at September 30, the group operated a total of 89 outlets in Singapore, one more from a year ago. 

Revenue from retail outlets increased by approximately $7.8 million, or 28.4% y-o-y, mainly due to incremental revenue from new outlets and increase in revenue from existing outlets. 

The increase in retail revenue was partially offset by a decrease in revenue from closed outlets. 

 

Revenue from other services, such as delivery and catering services, decreased by approximately $7.4 million y-o-y mainly due to absence of packed meals catering to foreign workers dormitories, partially offset by higher delivery revenue during the current period.

 

Other income decreased by approximately $511,000 y-o-y to $3.93 million due to lower government grants, mainly the absence of foreign worker levy rebate of about $420,000 and lower property tax rebates offset by higher Job Support Scheme rebates, and additional job growth support scheme income for the current period. 

 

Other expenses increased by $207,000 y-o-y to $716,000 mainly due to the impairment of amount due from the group&rsquo s joint venture in the UK of approximately $26,000 and Malaysian associate of approximately $51,000.

 

There was also a higher exchange loss of approximately $178,000 mainly due to exchange rate loss on foreign currency denominated payables to related companies within the group.

 

The group&rsquo s current assets increased by approximately $30,000 to $32.16 million. The decrease in the group&rsquo s current and non-current liabilities was mainly due to 

 

As at Sept 30, the group had a positive net working capital of approximately $9.6 million compared to net working capital of approximately $7.5 million as at March 31. 

 

On June 7, Goodview Properties acquired 19,000 shares of Old Chang Kee for a consideration of S$13,490.

 

At 71 cents per share, this increased the Far East Organization Centre Pte Ltd' s deemed interest in Old Chang Kee from 11.98 per cent to the 12.00 per cent threshold.

 

Goodview Properties' substantial shareholding in Old Chang Kee has increased from 11.70 per cent as of the end of its FY20 (ended March 31).

 

On May 27, Old Chang Kee announced that its FY21 revenue decreased by approximately S$12.7 million or 14.4 per cent for the year, mainly due to a fall in revenue from retail outlets, offset by higher revenue from delivery, catering and events.

 

The group' s gross margin improved by 1.9 per cent to 65.6 per cent in FY21, mainly due to economies of scale from the large-scale catering of packed meals to foreign workers dormitories and improved food cost controls and higher production staff efficiency.

 

Other income also increased by approximately S$6.1 million due to government grants such as the Jobs Support Scheme, Wage Credit Scheme, Special Employment Grant Scheme and property tax rebates.

 

The group pointed out that its retail revenues remain below pre- Covid-19 levels due to various social distancing measures put in place, resulting in operational losses for some of its retail outlets.

 

The group added that it is continuing to review if there is a need to provide for further impairment to its assets, depending on how Covid-19 pans out in the months ahead.

 

With overseas operations in Iskandar Malaysia, London and Perth similarly impacted by Covid-19, the group has sought new revenue streams including frozen meal kit home deliveries and increased the range of snack deliveries and bento meals for its stay-at-home customers.

 

Old Chang Kee executive chairman Han Keen Juan and his spouse Ng Choi Hong are the respective controlling and deemed controlling shareholders of the popular food and beverage chain that specialises in curry puffs and other snacks.

20k snapped up