Latest Forum Topics / Others |
![]() |
Oriental Food Industries is Becoming a Powerhouse
|
|
i4value
Senior |
17-Mar-2025 15:04
![]() Yells: "i4value.asia" |
x 0
x 0 Alert Admin |
The Oriental Food Industries Holdings (OFI) group manufactures and markets snack food and confectionery products.
 
Between 2019 and 2024, OFI has transformed into a sustainability-driven, digitally-savvy, and globally expanding company through strategic initiatives that have strengthened its market position.
 
&bull Export sales now contribute approximately 65% of total revenue, reflecting OFI&rsquo s successful international expansion.
 
&bull Sustainability efforts include integrating solar energy at select manufacturing plants, reducing carbon emissions and operating costs.
 
&bull Digital transformation has been a key focus, with expanded e-commerce presence and stronger branding efforts on social media, enhancing direct engagement with consumers.
 
 
These initiatives have driven strong financial performance, with revenue growing at a CAGR of 8.5% over the past six years. Profitability has improved even more significantly, with PAT growing at a much higher CAGR of 24.9%, supported by gross profit margin expansion and declining fixed cost margins.
 
The various changes have positioned the company for long-term sustainable growth while maintaining its market leadership in Malaysia and beyond. Given these strengths, it is no surprise that OFI falls into the low-risk, good-business segment of the Fundamental Mapper.
![]()  
The market price has trended upward in recent years, reflecting the company' s improving prospects. Although it has pulled back from its three-year high, the current margin of safety appears limited. However, if earnings continue to grow while the stock price remains stable, the margin of safety could improve over time.
|
Useful To Me Not Useful To Me |