Company background
颜添财在察觉印度煎饼有商机后，于90年代初期即开始以人手制作，然后以机械进行冷冻后将之出口，但是，这种通过人手制作的数量很有限，在获得数量大的定单后，根本不能应付。于是，在1996年开始，该集团用尽心思改良制造方法，从欧洲入口新颖机械，以生产印度煎饼。
这种机械也是需要特别定做的，在该集团提供意见后，欧洲的机械厂商才制作出这种特殊的机械。果然，新机械为佳源食品集团取得突破，它们制作的印度煎饼以及其他冷冻食品，一运到欧美国家后，即成为抢手食品。由于色、香、味俱全及容易食用（只需放在锅内煎一会即能食用），该集团的印度煎饼很快就成为海外的印度家庭、中东人家庭以及有关人士经营的餐厅的甚受欢迎食品，为该集团奠定出口市场基矗颜添财说，机械化制作的印度煎饼，比手工制作的煎饼均匀，而制作数量比人工制作的量多出百倍以上。他说，印度煎饼没有种族藩篱，不但印度人与锡克人喜欢，中东人士以及华人也喜欢食用，因此，在海外市场很受欢迎。
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
佳源食品是一家国内领先的冷冻食品出口商，亦是一家稳健成长型的上市公司。该公司旗下的著名食品品牌包括Kawan,Veat,KG Pastry,Passion Bake和Kayangan Manisan。
(资汇21.6.2014)
Most people may not know that Kawan Food’s founder and executive chairman, Gan Thiam Chai, had actually started off exporting spring roll pastries before frozen paratha even came in the picture. It was through the suggestion of friends residing in the UK, who were craving for paratha, that Gan began looking for ways to automate paratha-making. He ended up becoming the first in the industry to master automated paratha-making.
http://www.theedgemarkets.com/my/article/kawan-food-pick-tempo-overseas April.2015
Business operation
(CIMB June.2015)
即将于8月8日在大马交易所第二板上市的佳源食品有限公司（Kawan Food Berhad）曾二度荣获由《南洋商报》举办的金牛奖，该公司董事经理颜添财，经过积极研究后，以新颖机械生产，经过良好的冷冻过程后，将这些食品出口至世界各国，特别是欧美市场，终于在冷冻食品工业中闯出春天，成为一名成功的食品制造商以及出口商。
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
建源食品公司在2000年，在莎阿南地区皇帽啤酒厂附近购获现有厂房，大规模进行机械生产业务。该公司首家工厂是在莎阿南第16区一座半独立式工厂。
该集团也在去年(2006)在莎阿南16区购置一块面积广达5英亩的地皮。颜添财也透露，新购厂地的建筑物建筑面积多达25万平方尺，其中单是冷冻房将有约4万方尺，惟该集团会逐步进行建筑厂房的工程。他说，新厂房将会制作粗硬的法国面包、薄饼以及西饼等。另外，集团也将以大豆纤维加工的原料制作素食食品。新厂房将于今年底局部使用，该厂房将分数个阶段建造，全部工程完成至少须两年(2009)。
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
颜添财说，其集团重视研究，每年花在这方面的资金达10万令吉，研发组研究市场人士的口味与市场需求，然后提供意见予公司作出生产决定。
Based in Shah Alam, Selangor, the KFB Group is Malaysia’s leading exporter and largest manufacturer of frozen Asian food delicacies. Kawan Food exports at least 70% of its manufactured volume to over 20 countries, but mainly to the United States of America (USA), United Kingdom, Australia, New Zealand and the Gulf countries where the current operation caters for 80% of export sales. The top 10 markets for exports both FYE 31 December 2012 and 2013 are as follows:
(inter Pacific Aug.2014)
(inter Pacific Aug.2014)
佳源食品的净利前景依然正面，根据全球市场研究公司MarketLine的一项调查报告，全球冷冻食品的规模料从2010年的1920亿美元成长19%，至2015年的2280亿美元。
同时，另一家研究公司IblisWorld却指出，消费者对食用新鲜食物的意识日益增强，这对冷冻食品领域的成长带来一定冲击。冷冻食品制造商未来将专注于产品创新，提供更强调营养和便利的食品组合。
(资汇21.6.2014)
为了加强本身的竞争力，佳源食品已经定下的成长策略有3个，包括增建工厂，开垦特定海外市场，以及强化品牌知名度。
第一策略是兴建工厂来提升生产力，佳源食品位于英达岛(Pulau Indah)的新工厂将在明年开始作出净利贡献。这亦是佳源食品被重估的关键利好因素。实际上，佳源食品一直面对净利增长缓慢的局面，过去5年（2009-2013）的年复合成长率(CAGR)是3.57%。除了受到外汇波动的影响之外，食品制造厂的生产力有限时限制其成长的最主要原因。正因如此，佳源食品在2011年12月便以大约1426万令吉，在巴生港口的英达岛买下一块地皮兴建新工厂。在这之前，佳源食品只有2家工厂，分别位于Shah Alam的15区和16区。
时隔2年多后的今天，佳源食品的心工厂的建筑工程仍如火如茶地进行，预计明年可以完工和投入生产。该公司位于Shah Alam的2家工厂已经使用超过10年，管理层预计新工厂开始运作之后，可以负荷未来10-15年的生产需求。无论如何，由于佳源食品尚未披露新工厂的一些重要资讯。例如工厂投产的确实日期，新增生产力，生产成本和劳工成本等，我们无法评估新工厂可作出的潜在净利贡献。
第二策略是专注于推高海外市场的销售，佳源食品的冷冻食品出口至世界各地，包括亚洲，南美洲，欧洲，大洋洲和非洲。但该公司最看好的3个亚洲人口最密集和庞大的新兴市场，即中国，印度和印尼。除了出口之外，佳源食品在中国南部所设的唯一一家海外工厂，亦满足当地的市场需求。
第三项策略是强化现有的食品品牌知名度，尤其是Kawan。值得一提的是，佳源食品最近在美国推出另一个新品牌，以吸引当地不同的消费群。佳源食品的宣传和广告成本或因此增加。
(资汇21.6.2014)
Its bestsellers currently include paratha and chapatti. The company has been looking into introducing more “convenient” food. Fang declines to delve further into details, but says Kawan Food will stick to its core products.
“Our strength is in frozen foods. We will still be very much in that direction although there could be some diversification in our products,” he says.
http://www.thestar.com.my/Business/Business-News/2014/06/28/Kawan-Food-turns-up-the-heat-New-RM100mil-factory-will-spearhead-growth-over-next-15-years/?style=biz June.2014
The first and only flour-based frozen food company to be listed on Bursa Malaysia, Kawan Food also has a factory in Nantong, China that exports 75% of the volume produced, while the remainder 25% of products are sold in the Chinese market.
Kawan Food exports at least 70% of its manufactured volume to over 20 countries, but mainly to the United States, UK, Australia. New Zealand and the Gulf countries.
http://www.thestar.com.my/Business/Business-News/2014/06/28/Kawan-Food-turns-up-the-heat-New-RM100mil-factory-will-spearhead-growth-over-next-15-years/?style=biz June.2014
Homegrown frozen paratha and chapati maker Kawan Food Bhd ( Financial Dashboard) has extended its reach across 35 countries worldwide. The company now derives 55% of its revenue from overseas, with the domestic market making up the rest. The US is Kawan Food’s largest export market, accounting for half of its total export revenue.
http://www.theedgemarkets.com/my/article/kawan-food-pick-tempo-overseas April.2015
Like most export-oriented companies in Malaysia, Kawan Food has benefited from the weaker ringgit against the greenback since last September given that most of its export transactions are in US dollars, says Fang. Nevertheless, he points out that the difference in foreign exchange has not been a significant factor in its improved performance.
http://www.theedgemarkets.com/my/article/kawan-food-pick-tempo-overseas April.2015
目前，除了制作印度煎饼，佳源食品公司也生产70多种食品产品，包括春卷皮、春卷、馒头、包点、汤圆、年糕、粽子、荷叶饭、花卷、银丝卷等产品，琳珑满目。
目前，虽然国内外也有竞争者从事出口冷冻印度煎饼的业务，但是，它们所制作的数量，远远不及佳源食品集团，而在产品素质方面，该集团也领先同业。
很多人可能很难想像，大马各民族都喜爱的印度煎饼会成为一种畅销的出口食品，同时一个华人能在印度煎饼出口业中称霸，但是，颜添财却做到了。
印度煎饼是佳源食品集团的主要冷冻食品出口货，占该集团出口食品的约50％。该集团也制造其他多种适合各民族口味的冷冻食品，包括镘头、汤圆以及年糕等。
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
颜添财透露，其集团考虑以后除了继续生产制作好的印度煎饼以外，也生产一粒粒半制成煎饼，以供应给外国餐，用户只需配合其集团供应的简易操作小机械，即能将这种一粒粒半制成煎饼，在餐厅煎煮，有如在现场制作煎饼一样。
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
目前，概括印度煎饼在内，佳源食品公司共有约70多种食品产品，包括春卷皮、春卷、馒头、包点、汤圆、年糕、粽子、荷叶饭、花卷、银丝卷等产品，琳珑满目。
在汤圆方面，产品包括红豆沙汤圆、花生汤圆及黑芝麻汤圆。荷叶饭包括珍珠荷叶饭（原味）以及珍珠荷叶饭（娘惹）两种。
在印度煎饼方面，产品包括黄金烙饼、香葱烙饼（按：烙饼为Paratha，即俗称Roti Canai）、麦香烙饼（Chapatti）、红豆锅饼、香莲锅饼及咖喱锅饼等多种。
该集团也生产净印度面包（Sher－E－Punjab。 Naan）、芝麻印度面包、全麦印度面包等。
颜添财说，佳源食品集团接下来的出口食品将包括素食产品，这种新产品将在国内销售，然后才推介至海外市常该集团也将生产大豆蛋白质制成的泰国食品与沙爹，以及新口味的咖喱卜。至今年底时，该集团全年将推出不少过10种新产品。
颜添财说，在冷冻食品业方面，将制好的食品越快冷冻越好，这样，食品的保鲜度会较佳，原汁原味令人食用后，以后会再食用。
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
Over 30 years of operations supplying frozen Asian delicacies locally and abroad
Products that are certified as Halal by the Islamic Development Department of Malaysia (JAKIM), which meets the Islamic World Body Requirements, and while also meeting KFB’s strict standards on all ingredients and processes
Rigorous in-house R&D activities in both product and manufacturing processes, together with innovative recipes on a wide variety of products consumed by consumers locally and abroad
Application of quick-freezing technology that provides the highest level of freshness to consumers.
(inter Pacific Aug.2014)
(inter Pacific Aug.2014)
(BIMB Sept.2014)
(BIMB Sept.2014)
Sales revenue for FYE from 2009 to 2013 and the sales contribution for product group under KFB for both FYE 31 December 2013 and 2012 shown in Chart 2 and 3 are as follow:
(inter Pacific Aug.2014)
About 60% of its revenue is now derived from frozen paratha and chapati, while the rest is from other products.
http://www.theedgemarkets.com/my/article/kawan-food-pick-tempo-overseas April.2015
Frozen food manufacturer, Kawan Food Bhd, plans to make a foray into ready-cooked products from convenient raw products such as its famous praratha and chappati.Currently, Kawan Food derived 60 per cent of its revenue from its 'pratas' and 'chappatis' and the remaining from springroll pastry, oriental buns and western breads, said Chief Executive
Officer.
Going forward, Kawan Food is looking to expand their business by exploring the ready-cooked food market which is patronised by end users like housewives and institutions, he said. "With ready-cooked products we can venture into bigger channels and reach a lot more end-users," he told Bernama after the company's annual general meeting here today.
http://www.bernama.com/bernama/v8/bu/newsbusiness.php?id=1139269 May.2015
(CIMB June.2015)
(CIMB June.2015)
The group recently launched tortillas, a flatbread that is starting to see demand worldwide. This is seen to be part of its game plan to build the European market business over medium to long term.
Customers
现在，佳源食品集团出口的印度煎饼是以货柜计算的，而这些货柜是40尺长的大货柜。
他说，海外客户，尤其是美国市场客户，它们的定购量都以货柜计算，每次定购都有两三个货柜，而且经过两、三个星期后即售完而再订购。
海外的良好销量，使到佳源食品集团属下工厂每天须24小时生产，风雨不改地生产印度煎饼以及其他食品。
他说，外国的餐厅因为当地工资昂贵，雇请制作煎饼的厨师费用大，因此，都宁可购买该集团的冷冻煎饼，以在餐厅销售
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
颜添财说，目前，佳源食品集团的最大市场是美国市场，集团产品广销至美国东岸的纽约、新泽西、西岸的洛杉矶以及中部的芝加哥与休斯顿等地。
除了美国以外，欧洲方面，英国、法国、荷兰都有市场，集团在中东地区，包括阿拉伯酋长国、科威特、阿曼、沙地阿拉伯以及巴林都有强大的市常佳源食品集团的产品都是适合回教徒食用（Halal）的，因此能出口至中东国家。这些产品都有大马回教发展局的“Halal”认证。颜添财说，中东国家人民一般上都对大马以及其领袖，尤其是前首相敦马哈迪很尊重，人民很易接受大马产品。
他说，集团产品初期在中东国家发扬，由于品质不错，在1988年时，引起很多海外印度人的注意，他们喜爱食用集团的印度煎饼，因此，后来产品轻易地打入美国市场，而美国地广人多，现变成最大的市常此外，泰国、新加坡、印尼及澳洲、日本、韩国都是该集团的出口市常颜添财说，佳源食品集团目前每天制作的冷冻食品，包括馒头、印度煎饼以及其他食品在内，稍超过100万片，其中印度煎饼约占半数。因此，如以一年计算，印度煎饼的产量超过1亿片。他说，集团的产品中，约60％出口至外国，其馀40％通过大型超市与霸市包括巨人霸市、特易购（Tesco）、佳世客、家乐富（Carrefour）与马冷藏以及其他小型超市销售。该集团的出口以货柜计算，每个40尺长的大型货柜可装约28万片印度煎饼与其他食品。
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
Management
每年出口逾1亿片佳源印度煎饼海外扬名“空气、水与面粉是免费或很是便宜的东西，只要你好好地开发，你的财富将无穷无荆”今日（8月8日）在大马交易所第二板上市的佳源食品有限公司（Kawan Food Berhad）董事经理颜添财本着这个信念，在冷冻食品工业中闯出春天，成为一名成功的食品制造商以及出口商。
颜添财接受《南洋商报》访问时表示，上述这句话是多年前一位美国朋友告诉他的。这句话也给了他很多启示。头脑敏捷的他，凭着原有的食品制作背景，在印度煎饼，包括烙饼（Roti Canai，又名Paratha）与麦香烙饼（Chapatti）方面积极研究，以新颖机械生产，经过良好的冷冻过程后，将这些食品出口至世界各国，特别是欧美市常如今，以每年出口超过1亿片印度煎饼的惊人纪录，《世界印度煎饼大王》的的名堂非颜添财莫属！
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
现年51岁的颜添财，是以制作薄饼与薄饼皮起家的。他是吉隆坡公教中学的毕业生，在27岁时即创设建源食品私人有限公司。配合上市计划，建源食品私人有限公司已成为佳源食品的独资子公司。
他回忆说，其父母以制作与销售薄饼为业，他在学生时代即协助父母制作这种食品，对于制作食品有一定的知识。他是9个兄弟姐妹大家庭的老大，年纪很小即须帮忙做家务与协助制作薄饼。
在还未创业时，颜添财曾在一家德国工程公司担任技术助理，他从中获得机械方面的知识，这种知识对他后来的食品制作业务甚有帮助。这份工也使他认识到超级市场的负责人。
他说，起初与其胞弟颜添福（佳源食品公司销售董事）合力创业时，是在吉隆坡巴生路的住家，以煤气炉制作薄饼皮。他说，当初创业的资本只有区区的2千500令吉，而当时的薄饼皮都是以人手制作的。
过后，他的公司生产年糕，以铁罐及香蕉叶装年糕，这种年糕以卫生装潢，以及经过高温杀菌。该公司是国内第一家以这种方法制作年糕。在年糕建立市场后，公司接着推出“娘惹糕”与春卷等食品。公司以1万令吉买第一部机器，主要生产春卷皮与小春卷。
在80年代至85年期间，公司的全部产品都只供内销。颜添财说，除了其弟弟添福帮他创业外，后来他认识到其太太，一家人同心协力，努力开拓食品市常。他说，在1987年，其公司响应政府号召，以小型工业身份参与大马外贸促进局（MATRADE）主办的海外商展会，从此开始开拓海外市常颜添财创业过程也并非一帆风顺，在1985年，该公司的主要客户，即吉隆坡与槟城等地的英保良集团与友谊商店这两个当年甚响的零售集团被人接管，公司总共被拖欠20馀万令吉，当时，公司的客户主要是超级市场，而被接管的公司占公司客户的80％。他说，上述零售集团的倒闭，使其公司蒙受重伤，幸而，公司产品的盈利赚幅好，使公司不致跟着倒闭。当时，公司出很少向银行举贷，因此，“有惊无险”地度过这项危机。
国内市场的经验，使他萌起出口业务的念头，于是在1987年开始即开拓海外市常在出口市场有了一定基础后，颜添财大胆地以600万令吉的高价入口新颖食品机械，取代人工制作。过后，由于印度煎饼出口市场越做越好，其公司定制其馀新颖机械，包括成本以及每个月电费昂贵的高速冷冻机械，进行煎饼以及其他食品的制造工作。机械化生产食品，使到建源食品公司奠定它在国内外的冷冻食品制造业的稳定地位。建源食品公司是国内第一家以全部机械化生产印度煎饼的食品公司。
颜添财说，建源食品公司从事印度煎饼制作业务，除了拥有商机因素外，另一个因素是华人食品很快变会引发其他公司加入阵容，使市场产品充斥，引起恶性竞争。但是，印度煎饼并不是人人能做，即使能做，其数量也不多，因此在海外的竞争情况比较没有这么剧烈。
1985年至1987年国内发生的经济不景气导致国内几家主要百货公司与超级市场集团倒闭，当时佳源食品集团的客户全在国内，而其主要客户也都是这些百货公司或超级市场集团。有关集团的倒闭使到佳源集团的业务几乎停顿。惟后来有惊无险地度过。
但是，1997年的经济风暴却为佳源食品集团带来商机。政府将令吉兑美元汇值固定在3.80令吉兑1美元，使到出口公司占了有利地位，因为令吉的贬值使出口公司的产品在外国市场更具竞争力。颜添财抓紧这个机会，集团集中精力，开发一些适合外销的产品，开拓新的市常最近政府撤销令吉兑美元固定汇率，使用有管理浮动利率政策，令吉汇值稍微上升，但对该集团影响不大。
颜添财说，我国有很多传统食品，只要经过适当的改变，就可以介绍给外国。该集团过去努力把各民族现有的传统食品，改变成超越种族的食品，即是所有大马人都喜爱的食品，而烙饼（roti canai）就是一个很好的例子。他说，他专长技术与市场开发，他的主要任务是开发机械化的生产方法，以取代人工，并选择适当的大马食品介绍到外国市常通过研究与实验，集团的产品就有更好条件打进市场，不论是在国内或外国。
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
The major shareholder of Kawan Food is its founder and chairman Datuk Gan Thiam Chai who has a 33.08% direct stake.
The second largest shareholder, Goshenite Ltd, currently holds a 23.84% equity interest in the company and is an existing customer. This is the vehicle of Nareshchandra Gordhandas Nagrecha. Goshenite acquired its stake in August 2009 from Kilat Kaca Sdn Bhd, whose owners are Datuk Ibrahim Ahmad and Tan Sri Mohd Ibrahim Mohd Zain, who sit on the board of Brahim’s Holdings Bhd.
http://www.thestar.com.my/Business/Business-News/2014/06/28/Kawan-Food-turns-up-the-heat-New-RM100mil-factory-will-spearhead-growth-over-next-15-years/?style=biz June.2014
The counter has risen about 130% in a year’s time to RM2.15. Apart from the recent results announcement and expansion plans, Fang said he is not aware of any other corporate developments.
http://www.thestar.com.my/Business/Business-News/2014/06/28/Kawan-Food-turns-up-the-heat-New-RM100mil-factory-will-spearhead-growth-over-next-15-years/?style=biz June.2014
“We want to keep borrowings to a minimal which is why we want to move cautiously. Less than 50% of the plant’s costs will be from borrowings,” Fang says.
“We are looking to introduce new products in new categories that could have a lot more potential in Malaysia and other countries,” Fang says.
“The main thrusts are to develop our existing markets, and penetrate some new ones like South America and Africa. We are trying to be a bit more aggressive,” says Fang.
http://www.thestar.com.my/Business/Business-News/2014/06/28/Kawan-Food-turns-up-the-heat-New-RM100mil-factory-will-spearhead-growth-over-next-15-years/?style=biz June.2014
(inter Pacific Aug.2014)
Kawan Food Bhd ( Financial Dashboard) non-independent executive director Timothy Tan Heng Han, 34, has been re-designated as managing director (MD) of the frozen food manufacturer.
In a filing with Bursa Malaysia today, it was revealed that Tan, who is also the deputy general manager of exports for Kawan Food Manufacturing Sdn Bhd which is a subsidiary of Kawan Food, will be taking on the role of MD. Tan is the son-in-law of Kawan Food executive chairman Gan Thiam Chai, and his wife Kwan Sok Kay who is an executive director in the company. Both Gan and Kwan are substantial shareholders of Kawan Food, with some 39.12% of shareholdings.
http://www.theedgemarkets.com/my/article/timothy-tan-re-designated-kawan-food-md May.2015
Like most export-oriented companies in Malaysia, Kawan Food has benefited from the weaker ringgit against the greenback since last September given that most of its export transactions are in US dollars, says Fang. Nevertheless, he points out that the difference in foreign exchange has not been a significant factor in its improved performance.
“We’re just concerned that down the line, with the expansion going on now, there will be a lot of the equipment that we will buy in US dollars. In that sense, there is some balancing there. But it is fortunate that our revenue from exports is growing quite well, so I think that will help to neutralise the impact of these purchases,” explains Fang.
http://www.theedgemarkets.com/my/article/kawan-food-pick-tempo-overseas April.2015
Its largest shareholder is Gan with 32.81% equity interest while Goshenite Ltd holds 23.65%.
http://www.theedgemarkets.com/my/article/kawan-food-pick-tempo-overseas April.2015
Kawan Food Bhd ( Financial Dashboard) founder and chairman Datuk Gan Thiam Chai has sold some 3.5 million shares in the company for RM6.37 million. In a filing with Bursa Malaysia today, Kawan Food said Gan disposed of 3.537 million shares, equivalent to a 1.93% stake at RM1.80 apiece on April 8, via a direct business transaction. Following the disposal, Gan still has 56.4 million shares or a 30.84% stake in the manufacturer of frozen Asian food delicacies.
The stock closed one sen or 0.52% lower at RM1.92 today, translating into a market capitalisation of RM352.94 million.
http://www.theedgemarkets.com/my/article/kawan-food-chairman-sells-2-stake-rm637-mil April.2015
Frozen Asian food delicacies manufacturer Kawan Food Bhd ( Financial Dashboard) saw 6.11 million shares or a 3.33% stake in the firm traded off market today(Goshenite), at a total value of RM10.99 million. According to Bloomberg data, Kawan Food’s (fundamental: 3.0; valuation: 1.1) shares were moved in seven blocks of various sizes at RM1.80 per share.
Kawan Food rose 2 sen or 1.06% to close at RM1.91 today, with a total of 148,000 shares done, for a market capitalisation of RM350 million.
http://www.theedgemarkets.com/my/article/kawan-food-sees-333-stake-trade-market April.2015
Growth/Strategy
颜添财说，在全球化的时代里，产品竞争越来越剧烈是可预期的，因此，佳源食品集团目前也考虑在海外设立食品工厂，以便能在较低生产成本情况下生产，加强其竞争优势。该集团考虑设厂的地点包括中国、印度以及印尼。不过，有关设厂的时机还未成熟，在成熟时集团将作出决定。
他说，目前，国内一些半人工与半机械化的工厂，也制造冷冻印度煎饼，并有少量出口。在海外方面，目前的竞争还不算强，印度、巴基斯坦也有制作冷冻印度煎饼，不过，它们的规模都没有佳源食品集团那么大，而机械也没有这么现代化。
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
Kwan Food Bhd, which has two factories in Shah Alam, will be consolidating its operations under one roof, by the end of 2015. The RM100mil exercise will see Kawan Food relocating its operations to a 15-acre site in Pulau Indah, Port Klang. “We hope to be able to move in, in the third quarter of 2015,” chief executive officer Jon Fang tells StarBizWeek.
The new factory, which will cater to the company’s growth needs over the next 15 years, will surpass the combined size of its two existing factories in Shah Alam by almost five times. It will feature state-of-the-art equipment including a modern warehousing system. “We will also have a new art refrigeration system that is environmentally friendly,” he says.
This expansion will see Kawan Food progressively spending around RM100mil over three to four years. Fang adds that the factory will be funded through internal funds as well as some borrowings, although he noted that Kawan Food would borrow less than 50% of the total cost. “We want to keep borrowings to a minimal which is why we want to move cautiously. Less than 50% of the plant’s costs will be from borrowings,” he says.
The Pulau Indah factory will enable Kawan Food to increase capacity in its existing products, as well as leave room for new products. “We are looking to introduce new products in new categories that could have a lot more potential in Malaysia and other countries,” he says.
Fang says physical construction on the new factory in Pulau Indah will most likely commence in August. “We have just completed the foundation,” he adds.
“The main thrusts are to develop our existing markets, and penetrate some new ones like South America and Africa. We are trying to be a bit more aggressive,” says Fang. Kawan Food exports at least 70% of its manufactured volume to over 20 countries, but mainly to the United States, UK, Australia. New Zealand and the Gulf countries.
http://www.thestar.com.my/Business/Business-News/2014/06/28/Kawan-Food-turns-up-the-heat-New-RM100mil-factory-will-spearhead-growth-over-next-15-years/?style=biz June.2014
(inter Pacific Aug.2014)
Cost/Pricing
除了广告成本之外，佳源食品也面对其他营运成本压力，包括新工厂投入生产后，劳力和电力成本也将相对提高。另一个不利因素是令吉汇率走强，使佳源食品的海外销售面对汇率转换的损失。年初至今，令吉兑美元上升1.97%，至3.2140。
(资汇21.6.2014)
“Increasingly, we have been putting more into branding, both locally and in our export markets,” Fang says. It currently spends about 5% to 7% of its revenue on advertising and promotion. Going forward, the company will also be spending more on research and development. “We believe in investing into our brand,” he adds.
http://www.thestar.com.my/Business/Business-News/2014/06/28/Kawan-Food-turns-up-the-heat-New-RM100mil-factory-will-spearhead-growth-over-next-15-years/?style=biz June.2014
佳源食品目前并没有订下派息政策，但过去4年均有派息，而过去2年皆派每股1.8仙。该公司2月28日已宣布派每股1.8仙中期股息和3.6仙特别股息，合计是每股5.4仙，比2013财政年的1.8仙高出200%，按6月11日的1.90收市价计算，其周息率只有2.84%，基本上没有太大吸引力。
(资汇21.6.2014)
(inter Pacific Aug.2014)
(CIMB June.2015)
Corporate exercise
Share price
佳源食品股价从去年（2013）3月1日的0.794令吉起跑，在15个月里猛涨1.106令吉或139%，至目前的2令吉左右。强劲的股价表现使到这只小型食品股引起市场关注。其本意比被大幅拉高及周息率被拉低。按目前的1.90令吉闭市价计算，佳源食品的本意比是13.22倍，相较于其他食品股不算便宜。
我们不妨以3只生产甜食品股来作评比，本意比较高的Apollo达11.69倍，OFI东方食品9.98倍和LONBISC8.54倍。至于周息率，Apollo以最高5.1%领先群雄，OFI和佳源食品分别以3.02%和2.58%紧随其后，而LONBISC只有1.2%。
(资汇21.6.2014)
The company’s warrants shot up 31% to 62 sen on June 12, spurring talk that a new investor could emerge. The warrants continued trending upwards, hitting a high of 74.5 sen on Wednesday. It closed the week at 70 sen. The counter has risen about 130% in a year’s time to RM2.15.
http://www.thestar.com.my/Business/Business-News/2014/06/28/Kawan-Food-turns-up-the-heat-New-RM100mil-factory-will-spearhead-growth-over-next-15-years/?style=biz June.2014
Note that the exercise price of the warrants has been reduced to 93 sen from RM1.40 subsequent to a one-for-two bonus issue that saw the issuance of 90 million bonus shares and 29.23 million new warrants.
(CIMB June.2015)
(CIMB June.2015)
Bear case
(BIMB Sept.2014)
Bull case
颜添财在察觉印度煎饼有商机后，于90年代初期即开始以人手制作，然后以机械进行冷冻后将之出口，但是，这种通过人手制作的数量很有限，在获得数量大的定单后，根本不能应付。于是，在1996年开始，该集团用尽心思改良制造方法，从欧洲入口新颖机械，以生产印度煎饼。
这种机械也是需要特别定做的，在该集团提供意见后，欧洲的机械厂商才制作出这种特殊的机械。果然，新机械为佳源食品集团取得突破，它们制作的印度煎饼以及其他冷冻食品，一运到欧美国家后，即成为抢手食品。由于色、香、味俱全及容易食用（只需放在锅内煎一会即能食用），该集团的印度煎饼很快就成为海外的印度家庭、中东人家庭以及有关人士经营的餐厅的甚受欢迎食品，为该集团奠定出口市场基矗颜添财说，机械化制作的印度煎饼，比手工制作的煎饼均匀，而制作数量比人工制作的量多出百倍以上。他说，印度煎饼没有种族藩篱，不但印度人与锡克人喜欢，中东人士以及华人也喜欢食用，因此，在海外市场很受欢迎。
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
Kawan Food started in the late 1970s as a sole proprietorship and is predominantly involves
in the manufacturing, trading and exporting of frozen food products. KFB is now the leading frozen food
manufacturer in Malaysia. As to date, the market is currently dominated by 6 companies. They are K.G.
Pastry Sdn. Bhd., Kart Food Sdn. Bhd., Ben Fortune Sdn. Bhd., P.A. Food Sdn. Bhd., Anika Food Industries
Sdn. Bhd., and Sydney Cake House Sdn. Bhd. KFB products conform to the highest health and food
standards around the world. Apart from ISO 22000:2005 and BRC (British Retail Consortium) certification,
KFB products are also certified as Halal by the Islamic Development Department of Malaysia (JAKIM), which
meets the Islamic World Body Requirements.
(BIMB Sept.2014)
(BIMB Sept.2014)
Kawan Food Berhad, the first and only flour-based frozen food company to be listed on Bursa Malaysia since Year 2005, also has a
factory in Nantong, China that exports 75% of the volume produced, while the remainder 25% of products are sold in the Chinese
market. Its group structure is as follows:
(inter Pacific Aug.2014)
The business originally started in the late 1970s as a small family run outfit by supplying traditional and homemade pastry products
to local groceries and supermarkets in Malaysia, and started to export its products in the mid 1980s whilst gaining a steady lead in
the local market. In 2000, KFB have established a new manufacturing facility, and have continued to invest heavily in employee skills
and the latest technology with all processing methods using imported hi-tech production lines through the successful adaptation of
European technology for high quality end products.
佳源食品是一家国内领先的冷冻食品出口商，亦是一家稳健成长型的上市公司。该公司旗下的著名食品品牌包括Kawan,Veat,KG Pastry,Passion Bake和Kayangan Manisan。
(资汇21.6.2014)
Most people may not know that Kawan Food’s founder and executive chairman, Gan Thiam Chai, had actually started off exporting spring roll pastries before frozen paratha even came in the picture. It was through the suggestion of friends residing in the UK, who were craving for paratha, that Gan began looking for ways to automate paratha-making. He ended up becoming the first in the industry to master automated paratha-making.
http://www.theedgemarkets.com/my/article/kawan-food-pick-tempo-overseas April.2015
Over
the past 1-2 decades, Kawan has won many domestic/international awards, halal
certification and global standards for food safety.
(CIMB June.2015)
Business operation
Kawan is Malaysia’s largest frozen
flour products producer. Its main
products are roti paratha, chapatti
and spring roll pastry. The domestic
market makes up the largest share of
the group’s revenue at 40%, while the
US is its largest export market at 30%
of group revenue.
Kawan is currently constructing a new RM100m factory in the “Selangor Halal Hub” (SHH) at Pulau Indah. When ready by year-end, the new freezer warehouse would be 5-6x larger than its existing factories in Shah Alam. Management is banking on the new facility to help it target new markets and develop new products. The company is funding the plant’s construction via internal funds and from warrant conversions.
(CIMB June.2015)
Kawan is currently constructing a new RM100m factory in the “Selangor Halal Hub” (SHH) at Pulau Indah. When ready by year-end, the new freezer warehouse would be 5-6x larger than its existing factories in Shah Alam. Management is banking on the new facility to help it target new markets and develop new products. The company is funding the plant’s construction via internal funds and from warrant conversions.
(CIMB June.2015)
Kawan currently operates from three factories: two in Shah Alam and one in
Nantong, China. The Shah Alam factories are running close to full capacity, and
we estimate these factories contribute around 75% of the group’s revenue, while
China the remaining 25%. Kawan’s warehouses are huge freezers, the ones in
Shah Alam is capable to holding 2,600 pallets at any one time. Most of its
finished flour products are not cooked and as such, its inventory needs to be
frozen.
Kawan
is building a RM100m plant at a 15.5 acre industrial site in the “Selangor
Halal Hub” in Pulau Indah, Selangor (refer to Figure 4[20?]). When ready for
commercial production in 1Q16, the new warehouse will be at least 5x larger than
the existing Shah Alam factories and able to hold 16,000 pallets at any one
time.
(CIMB June.2015)
即将于8月8日在大马交易所第二板上市的佳源食品有限公司（Kawan Food Berhad）曾二度荣获由《南洋商报》举办的金牛奖，该公司董事经理颜添财，经过积极研究后，以新颖机械生产，经过良好的冷冻过程后，将这些食品出口至世界各国，特别是欧美市场，终于在冷冻食品工业中闯出春天，成为一名成功的食品制造商以及出口商。
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
建源食品公司在2000年，在莎阿南地区皇帽啤酒厂附近购获现有厂房，大规模进行机械生产业务。该公司首家工厂是在莎阿南第16区一座半独立式工厂。
该集团也在去年(2006)在莎阿南16区购置一块面积广达5英亩的地皮。颜添财也透露，新购厂地的建筑物建筑面积多达25万平方尺，其中单是冷冻房将有约4万方尺，惟该集团会逐步进行建筑厂房的工程。他说，新厂房将会制作粗硬的法国面包、薄饼以及西饼等。另外，集团也将以大豆纤维加工的原料制作素食食品。新厂房将于今年底局部使用，该厂房将分数个阶段建造，全部工程完成至少须两年(2009)。
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
颜添财说，其集团重视研究，每年花在这方面的资金达10万令吉，研发组研究市场人士的口味与市场需求，然后提供意见予公司作出生产决定。
Based in Shah Alam, Selangor, the KFB Group is Malaysia’s leading exporter and largest manufacturer of frozen Asian food delicacies. Kawan Food exports at least 70% of its manufactured volume to over 20 countries, but mainly to the United States of America (USA), United Kingdom, Australia, New Zealand and the Gulf countries where the current operation caters for 80% of export sales. The top 10 markets for exports both FYE 31 December 2012 and 2013 are as follows:
Asian frozen ready meals, both imports and domestic, are becoming increasingly popular. Large volumes and varieties of such fare
have been imported into the USA over the past few years primarily to satisfy the appetites of Asian immigrants in North America,
but now demand for this cuisine is rising markedly among non-Asian consumers.
The trade magazine Advertising Age recently pointed out that the 2 largest segments of the US Asian community, Chinese and South Asians, have populations that are larger than several European countries. With more than 15 million consumers, whose population will escalate to more than 30 million in less than a few decades, the spending clout of Asian-Americans rivals the GDP of more than a dozen European states and leading economies around the world. For a population that represents only about 5% of the US, by 2014, Asian-American consumers will have more than USD700 billion in spending power- up from USD509 billion in 2009.
Sales contribution for geographical location under KFB for both FYE 31 December 2013 and 2012 are shown in Chart 3 is as follow:
KFB unwavering commitment to product quality speaks for itself with evidence in
KFB intensive and continued investment in the state of the art manufacturing facilities. For high quality end
product, KFB use imported European production lines in all processing methods. KFB are also unique in that
KFB use quick-freezing technology, which is more commonly applied to higher margin products in other
industries, but made it possible by economies of scale. Quick freezing is essential as it enables KFB to
provide the highest level of freshness to consumers. Rigorous R&D activities in-house and collaboration
with external parties in both product and manufacturing processes have also made KFB the global leader in
terms of product range within product segment. Innovations in recipes with creation of wide variety
products from continuous R&D effort and market exposures have made the products widely acceptable by
consumers locally and worldwide.
(BIMB Sept.2014)
(BIMB Sept.2014)
佳源食品的净利前景依然正面，根据全球市场研究公司MarketLine的一项调查报告，全球冷冻食品的规模料从2010年的1920亿美元成长19%，至2015年的2280亿美元。
同时，另一家研究公司IblisWorld却指出，消费者对食用新鲜食物的意识日益增强，这对冷冻食品领域的成长带来一定冲击。冷冻食品制造商未来将专注于产品创新，提供更强调营养和便利的食品组合。
(资汇21.6.2014)
为了加强本身的竞争力，佳源食品已经定下的成长策略有3个，包括增建工厂，开垦特定海外市场，以及强化品牌知名度。
第一策略是兴建工厂来提升生产力，佳源食品位于英达岛(Pulau Indah)的新工厂将在明年开始作出净利贡献。这亦是佳源食品被重估的关键利好因素。实际上，佳源食品一直面对净利增长缓慢的局面，过去5年（2009-2013）的年复合成长率(CAGR)是3.57%。除了受到外汇波动的影响之外，食品制造厂的生产力有限时限制其成长的最主要原因。正因如此，佳源食品在2011年12月便以大约1426万令吉，在巴生港口的英达岛买下一块地皮兴建新工厂。在这之前，佳源食品只有2家工厂，分别位于Shah Alam的15区和16区。
时隔2年多后的今天，佳源食品的心工厂的建筑工程仍如火如茶地进行，预计明年可以完工和投入生产。该公司位于Shah Alam的2家工厂已经使用超过10年，管理层预计新工厂开始运作之后，可以负荷未来10-15年的生产需求。无论如何，由于佳源食品尚未披露新工厂的一些重要资讯。例如工厂投产的确实日期，新增生产力，生产成本和劳工成本等，我们无法评估新工厂可作出的潜在净利贡献。
第二策略是专注于推高海外市场的销售，佳源食品的冷冻食品出口至世界各地，包括亚洲，南美洲，欧洲，大洋洲和非洲。但该公司最看好的3个亚洲人口最密集和庞大的新兴市场，即中国，印度和印尼。除了出口之外，佳源食品在中国南部所设的唯一一家海外工厂，亦满足当地的市场需求。
第三项策略是强化现有的食品品牌知名度，尤其是Kawan。值得一提的是，佳源食品最近在美国推出另一个新品牌，以吸引当地不同的消费群。佳源食品的宣传和广告成本或因此增加。
(资汇21.6.2014)
Its bestsellers currently include paratha and chapatti. The company has been looking into introducing more “convenient” food. Fang declines to delve further into details, but says Kawan Food will stick to its core products.
“Our strength is in frozen foods. We will still be very much in that direction although there could be some diversification in our products,” he says.
http://www.thestar.com.my/Business/Business-News/2014/06/28/Kawan-Food-turns-up-the-heat-New-RM100mil-factory-will-spearhead-growth-over-next-15-years/?style=biz June.2014
The first and only flour-based frozen food company to be listed on Bursa Malaysia, Kawan Food also has a factory in Nantong, China that exports 75% of the volume produced, while the remainder 25% of products are sold in the Chinese market.
Kawan Food exports at least 70% of its manufactured volume to over 20 countries, but mainly to the United States, UK, Australia. New Zealand and the Gulf countries.
http://www.thestar.com.my/Business/Business-News/2014/06/28/Kawan-Food-turns-up-the-heat-New-RM100mil-factory-will-spearhead-growth-over-next-15-years/?style=biz June.2014
Homegrown frozen paratha and chapati maker Kawan Food Bhd ( Financial Dashboard) has extended its reach across 35 countries worldwide. The company now derives 55% of its revenue from overseas, with the domestic market making up the rest. The US is Kawan Food’s largest export market, accounting for half of its total export revenue.
http://www.theedgemarkets.com/my/article/kawan-food-pick-tempo-overseas April.2015
Like most export-oriented companies in Malaysia, Kawan Food has benefited from the weaker ringgit against the greenback since last September given that most of its export transactions are in US dollars, says Fang. Nevertheless, he points out that the difference in foreign exchange has not been a significant factor in its improved performance.
http://www.theedgemarkets.com/my/article/kawan-food-pick-tempo-overseas April.2015
The company’s new freezer warehouse can handle 16,000 pallets when it is
ready next year. Management has indicated that it will use a pallet size of
6,000 and will look to rent out the extra space. We estimate that if Kawan can
rent out the remaining space, this could boost revenue by RM8m-10m
annually.
(CIMB June.2015)
(CIMB June.2015)
Products
Having decided to set up its new factory in Pulau Indah, Kawan is entitled to
choose from a range of tax incentives. We understand that the company is
looking at the 100% income tax exemption on qualifying capex for a period up
to 10 years, but only for earnings generated from the Pulau Indah factory.
Based on the initial RM100m capex, Kawan should be tax free in 2016/17 and if
all goes well, management could further increase its capex spending at the new
factory in 1-2 years. Kawan is seeking the approval for the tax incentives from
the Malaysian Investment Development Authority (MIDA) and the Ministry Of
Finance (MoF). We have assumed in our earnings forecast that Kawan would
get the tax-incentive approvals by year-end.
(CIMB June.2015)
Businesses in the Selangor Halal Hub (SHH) at Pulau Indah are eligible for
special tax incentives. According to the website (pulauindah.com.my), tax
incentives offered include:
Kawan is the process of applying for the tax incentives and we believe the company should get the necessary approvals by year-end. In our earnings forecasts, we are looking at low effective tax rates for Kawan for 2016 and 2017, based on tax exemptions on the RM100m capex.
(CIMB June.2015)
- 100% income tax exemption on qualifying capital expenditure for a period of 10 years or income tax exemption on export sales for a period of 5 years;
- exemption from import duty and sales tax on raw materials used for the development and production of halal promoted products;
- double deduction on expenses incurred in obtaining international quality standards such as HACCP, GMP and Codex Alimentarius (food standard guidelines of FAO and WHO).
Kawan is the process of applying for the tax incentives and we believe the company should get the necessary approvals by year-end. In our earnings forecasts, we are looking at low effective tax rates for Kawan for 2016 and 2017, based on tax exemptions on the RM100m capex.
(CIMB June.2015)
Kawan
should benefit from the current weak ringgit/US$ exchange rate. The company
does not hedge its forex exposure as raw materials like flour are mainly purchased
in the domestic currency, while export sales are in US$. However, management did indicate
that the company does pass on some of the weak ringgit benefits to its
customers. Our economic team has forecast a ringgit/US$ exchange of RM3.69 in
2016 and 2017. Based on our sensitivity analysis, every 1% depreciation in the
ringgit against the greenback should boost Kawan’s FY2016/2017 net profit by
3%.
(CIMB June.2015)
Kawan’s EBITDA margins have been
largely stable over the past three years, at 21-22%. With the new factory in place, Kawan’s EBITDA
margin should be even better due to rising automation and greater economies of
scale. We have assumed a conservative 23.0% EBITDA margin in our
FY2016/2017 EPS. A 1%-point EBITDA improvement could boost Kawan’s FY2016 and
FY2017 net profit by RM2.4 and RM3m respectively, or 5-6% EPS enhancement.
(CIMB June.2015)
目前，虽然国内外也有竞争者从事出口冷冻印度煎饼的业务，但是，它们所制作的数量，远远不及佳源食品集团，而在产品素质方面，该集团也领先同业。
很多人可能很难想像，大马各民族都喜爱的印度煎饼会成为一种畅销的出口食品，同时一个华人能在印度煎饼出口业中称霸，但是，颜添财却做到了。
印度煎饼是佳源食品集团的主要冷冻食品出口货，占该集团出口食品的约50％。该集团也制造其他多种适合各民族口味的冷冻食品，包括镘头、汤圆以及年糕等。
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
颜添财透露，其集团考虑以后除了继续生产制作好的印度煎饼以外，也生产一粒粒半制成煎饼，以供应给外国餐，用户只需配合其集团供应的简易操作小机械，即能将这种一粒粒半制成煎饼，在餐厅煎煮，有如在现场制作煎饼一样。
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
目前，概括印度煎饼在内，佳源食品公司共有约70多种食品产品，包括春卷皮、春卷、馒头、包点、汤圆、年糕、粽子、荷叶饭、花卷、银丝卷等产品，琳珑满目。
在汤圆方面，产品包括红豆沙汤圆、花生汤圆及黑芝麻汤圆。荷叶饭包括珍珠荷叶饭（原味）以及珍珠荷叶饭（娘惹）两种。
在印度煎饼方面，产品包括黄金烙饼、香葱烙饼（按：烙饼为Paratha，即俗称Roti Canai）、麦香烙饼（Chapatti）、红豆锅饼、香莲锅饼及咖喱锅饼等多种。
该集团也生产净印度面包（Sher－E－Punjab。 Naan）、芝麻印度面包、全麦印度面包等。
颜添财说，佳源食品集团接下来的出口食品将包括素食产品，这种新产品将在国内销售，然后才推介至海外市常该集团也将生产大豆蛋白质制成的泰国食品与沙爹，以及新口味的咖喱卜。至今年底时，该集团全年将推出不少过10种新产品。
颜添财说，在冷冻食品业方面，将制好的食品越快冷冻越好，这样，食品的保鲜度会较佳，原汁原味令人食用后，以后会再食用。
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
Kawan Food Berhad carries a comprehensive range of traditional South Asian leavened
and unleavened flatbreads, pastries and curries, and pride themselves on using only the
finest ingredients- with no transfatty acids and preservatives to contribute to a healthier
lifestyle.
Over 30 years of operations supplying frozen Asian delicacies locally and abroad
Products that are certified as Halal by the Islamic Development Department of Malaysia (JAKIM), which meets the Islamic World Body Requirements, and while also meeting KFB’s strict standards on all ingredients and processes
Rigorous in-house R&D activities in both product and manufacturing processes, together with innovative recipes on a wide variety of products consumed by consumers locally and abroad
Application of quick-freezing technology that provides the highest level of freshness to consumers.
(inter Pacific Aug.2014)
KFB’s brand represents the wholesome goodness of home prepared foods and KFB prides itself on its use of only the finest
ingredients- free of transfatty acids and preservatives to contribute to a healthier lifestyle. All products conform to the highest
health and food standards around the world, being certified by ISO 22000:2005 and BRC (British Retail Consortium) with the awards
and recognition/certification awarded as described below:
(inter Pacific Aug.2014)
(inter Pacific Aug.2014)
Kawan Food branding is a well established distribution network both in its home country Malaysia and globally, where it supplies to
many fast food chains, restaurants and wholesalers. Besides, through its subsidiaries, KFB is engaged mainly in the manufacturing
and sale of bestselling frozen food products currently that include paratha and chapatti
Its complete range of product category include:
-
Paratha
-
Stuffed Paratha
-
Wellness Paratha
-
Chapatti
-
Naan
-
Roti wraps
-
Curry
-
Puff Pastry Samosa
-
Roti Chanai
-
Roti Multigrain
-
Veat
-
Passion Bake
(BIMB Sept.2014)
As Malaysians are becoming more health concious, KFB is constantly innovating its products
to produce healthier and tastier food and beverages, to meet consumers' growing needs. KFB also
produces Reduced Fat Paratha and Roti Multigrain in order to match with the consumer demand.
Sales revenue for FYE from 2009 to 2013 and the sales contribution for product group under KFB for both FYE 31 December 2013 and 2012 shown in Chart 2 and 3 are as follow:
About 60% of its revenue is now derived from frozen paratha and chapati, while the rest is from other products.
http://www.theedgemarkets.com/my/article/kawan-food-pick-tempo-overseas April.2015
Frozen food manufacturer, Kawan Food Bhd, plans to make a foray into ready-cooked products from convenient raw products such as its famous praratha and chappati.Currently, Kawan Food derived 60 per cent of its revenue from its 'pratas' and 'chappatis' and the remaining from springroll pastry, oriental buns and western breads, said Chief Executive
Officer.
Going forward, Kawan Food is looking to expand their business by exploring the ready-cooked food market which is patronised by end users like housewives and institutions, he said. "With ready-cooked products we can venture into bigger channels and reach a lot more end-users," he told Bernama after the company's annual general meeting here today.
http://www.bernama.com/bernama/v8/bu/newsbusiness.php?id=1139269 May.2015
Kawan only produces non-meat
products, targeting mainly retail customers. With the new factory, the company is also looking to
launch meat-related products. Due to food safety requirements, non-meat
and meat-related products must be stored in separate warehouses. In addition,
at the new factory, Kawan will also be producing different-sized products with
various thickness. One of the products Kawan is looking to market aggressively once the new
factory is operational is tortillas, a flatbread with worldwide consumer
appeal.
(CIMB June.2015)
Kawan
sells a wide range of frozen products under four major brands: Kawan, KG
Pastry, Veat and Passion Bake. The group’s best seller is still the roti
paratha, which contributes more than 40% of the group’s revenue. Other best
sellers include spring roll pastry (SPR) and chapatti. These three products
contribute more than 80% of the group’s revenue.
The group recently launched tortillas, a flatbread that is starting to see demand worldwide. This is seen to be part of its game plan to build the European market business over medium to long term.
http://www.thestar.com.my/business/business-news/2015/12/05/kawan-food-on-a-roll-with-strong-us-dollar/ December2015 - FY2015
Customers
现在，佳源食品集团出口的印度煎饼是以货柜计算的，而这些货柜是40尺长的大货柜。
他说，海外客户，尤其是美国市场客户，它们的定购量都以货柜计算，每次定购都有两三个货柜，而且经过两、三个星期后即售完而再订购。
海外的良好销量，使到佳源食品集团属下工厂每天须24小时生产，风雨不改地生产印度煎饼以及其他食品。
他说，外国的餐厅因为当地工资昂贵，雇请制作煎饼的厨师费用大，因此，都宁可购买该集团的冷冻煎饼，以在餐厅销售
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
颜添财说，目前，佳源食品集团的最大市场是美国市场，集团产品广销至美国东岸的纽约、新泽西、西岸的洛杉矶以及中部的芝加哥与休斯顿等地。
除了美国以外，欧洲方面，英国、法国、荷兰都有市场，集团在中东地区，包括阿拉伯酋长国、科威特、阿曼、沙地阿拉伯以及巴林都有强大的市常佳源食品集团的产品都是适合回教徒食用（Halal）的，因此能出口至中东国家。这些产品都有大马回教发展局的“Halal”认证。颜添财说，中东国家人民一般上都对大马以及其领袖，尤其是前首相敦马哈迪很尊重，人民很易接受大马产品。
他说，集团产品初期在中东国家发扬，由于品质不错，在1988年时，引起很多海外印度人的注意，他们喜爱食用集团的印度煎饼，因此，后来产品轻易地打入美国市场，而美国地广人多，现变成最大的市常此外，泰国、新加坡、印尼及澳洲、日本、韩国都是该集团的出口市常颜添财说，佳源食品集团目前每天制作的冷冻食品，包括馒头、印度煎饼以及其他食品在内，稍超过100万片，其中印度煎饼约占半数。因此，如以一年计算，印度煎饼的产量超过1亿片。他说，集团的产品中，约60％出口至外国，其馀40％通过大型超市与霸市包括巨人霸市、特易购（Tesco）、佳世客、家乐富（Carrefour）与马冷藏以及其他小型超市销售。该集团的出口以货柜计算，每个40尺长的大型货柜可装约28万片印度煎饼与其他食品。
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
Catering & Food Service. KFB are also the favourite choice among the big players in the food service
industry where Kawan Food are now supplying a selection of flat breads and wraps to several well-known
fast food chains in Malaysia, Singapore, Hong Kong and Indonesia. Besides fast food chains, Kawan Food
are also supplying products to hotels throughout the country, among them, Equatorial Hotel, Eastin Hotel
and The Legend Hotel.
(BIMB Sept.2014)
Wide Export Distribution Network. KFB has wide distribution coverage both locally and internationally. As
mentioned, KFB also already a shelf strong presence across major supermarkets and hypermarkets
throughout Malaysia. Looking beyond the local markets, KFB is constantly looking at new market prospects
and opportunities worldwide. At present, KFB exports to more than 20 countries across the globe.
(BIMB Sept.2014)
In an interview with The Edge, CEO Jon Fang reveals that Kawan Food’s target market in the US is the South Asian community as its Kawan brand of frozen paratha and chapati is popular with them. Its oriental products such as Chinese buns and glutinous rice balls, meanwhile, have a following among the Southeast Asian community living there.
http://www.theedgemarkets.com/my/article/kawan-food-pick-tempo-overseas April.2015
Kawan is likely seen as a beneficiary of the stronger USD as well as the economic recovery in the US. Export, mainly to the US, accounted for 58% of sales in 2014.
http://www.theedgemarkets.com/my/article/stock-momentum-kawan-food June.2015 - FY2015
(CIMB Aug.2015)
In an interview with The Edge, CEO Jon Fang reveals that Kawan Food’s target market in the US is the South Asian community as its Kawan brand of frozen paratha and chapati is popular with them. Its oriental products such as Chinese buns and glutinous rice balls, meanwhile, have a following among the Southeast Asian community living there.
http://www.theedgemarkets.com/my/article/kawan-food-pick-tempo-overseas April.2015
Kawan is likely seen as a beneficiary of the stronger USD as well as the economic recovery in the US. Export, mainly to the US, accounted for 58% of sales in 2014.
http://www.theedgemarkets.com/my/article/stock-momentum-kawan-food June.2015 - FY2015
Most of Kawan’s customers are South Asians and Chinese located all over the
world and the company does not sell much to Caucasians. However in end-2014,
the company started selling tortillas, a soft thin flatbread, on a small scale. The
company is expected to aggressively promote its tortilla products when its new
factory starts production next year.
(CIMB June.2015)
While Malaysia is its largest market, the US is its largest export market,
contributing around 30% of the group's revenue. Kawan’s brand recognition in
the US is strong and we understand that the company is the largest roti paratha
and chapati distributor in this country. As such, we were not surprised when
management told us that over the past few years, there were four different
counterfeit cases involving the use of Kawan’s brand and logo.
(CIMB June.2015)
Kawan currently supplies its products mainly to retailers. However, management is looking to expand its market reach in 2016 to sectors such as quick-service restaurants (QSR) and airlines. We believe that management has since 2014 been carrying out R&D on products targeting these sectors. This is possible as the products can be cooked or partially cooked at the new factory. The company is also building up a new sales team to target the new markets.
(CIMB June.2015)
Exports,
mainly to the US and denominated in USD, accounted for a significant 58.1% of
total sales in 2014, up from 54.7% in 2013. This ratio increased further to
61.6% in 1H2015.
Management
每年出口逾1亿片佳源印度煎饼海外扬名“空气、水与面粉是免费或很是便宜的东西，只要你好好地开发，你的财富将无穷无荆”今日（8月8日）在大马交易所第二板上市的佳源食品有限公司（Kawan Food Berhad）董事经理颜添财本着这个信念，在冷冻食品工业中闯出春天，成为一名成功的食品制造商以及出口商。
颜添财接受《南洋商报》访问时表示，上述这句话是多年前一位美国朋友告诉他的。这句话也给了他很多启示。头脑敏捷的他，凭着原有的食品制作背景，在印度煎饼，包括烙饼（Roti Canai，又名Paratha）与麦香烙饼（Chapatti）方面积极研究，以新颖机械生产，经过良好的冷冻过程后，将这些食品出口至世界各国，特别是欧美市常如今，以每年出口超过1亿片印度煎饼的惊人纪录，《世界印度煎饼大王》的的名堂非颜添财莫属！
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
现年51岁的颜添财，是以制作薄饼与薄饼皮起家的。他是吉隆坡公教中学的毕业生，在27岁时即创设建源食品私人有限公司。配合上市计划，建源食品私人有限公司已成为佳源食品的独资子公司。
他回忆说，其父母以制作与销售薄饼为业，他在学生时代即协助父母制作这种食品，对于制作食品有一定的知识。他是9个兄弟姐妹大家庭的老大，年纪很小即须帮忙做家务与协助制作薄饼。
在还未创业时，颜添财曾在一家德国工程公司担任技术助理，他从中获得机械方面的知识，这种知识对他后来的食品制作业务甚有帮助。这份工也使他认识到超级市场的负责人。
他说，起初与其胞弟颜添福（佳源食品公司销售董事）合力创业时，是在吉隆坡巴生路的住家，以煤气炉制作薄饼皮。他说，当初创业的资本只有区区的2千500令吉，而当时的薄饼皮都是以人手制作的。
过后，他的公司生产年糕，以铁罐及香蕉叶装年糕，这种年糕以卫生装潢，以及经过高温杀菌。该公司是国内第一家以这种方法制作年糕。在年糕建立市场后，公司接着推出“娘惹糕”与春卷等食品。公司以1万令吉买第一部机器，主要生产春卷皮与小春卷。
在80年代至85年期间，公司的全部产品都只供内销。颜添财说，除了其弟弟添福帮他创业外，后来他认识到其太太，一家人同心协力，努力开拓食品市常。他说，在1987年，其公司响应政府号召，以小型工业身份参与大马外贸促进局（MATRADE）主办的海外商展会，从此开始开拓海外市常颜添财创业过程也并非一帆风顺，在1985年，该公司的主要客户，即吉隆坡与槟城等地的英保良集团与友谊商店这两个当年甚响的零售集团被人接管，公司总共被拖欠20馀万令吉，当时，公司的客户主要是超级市场，而被接管的公司占公司客户的80％。他说，上述零售集团的倒闭，使其公司蒙受重伤，幸而，公司产品的盈利赚幅好，使公司不致跟着倒闭。当时，公司出很少向银行举贷，因此，“有惊无险”地度过这项危机。
国内市场的经验，使他萌起出口业务的念头，于是在1987年开始即开拓海外市常在出口市场有了一定基础后，颜添财大胆地以600万令吉的高价入口新颖食品机械，取代人工制作。过后，由于印度煎饼出口市场越做越好，其公司定制其馀新颖机械，包括成本以及每个月电费昂贵的高速冷冻机械，进行煎饼以及其他食品的制造工作。机械化生产食品，使到建源食品公司奠定它在国内外的冷冻食品制造业的稳定地位。建源食品公司是国内第一家以全部机械化生产印度煎饼的食品公司。
颜添财说，建源食品公司从事印度煎饼制作业务，除了拥有商机因素外，另一个因素是华人食品很快变会引发其他公司加入阵容，使市场产品充斥，引起恶性竞争。但是，印度煎饼并不是人人能做，即使能做，其数量也不多，因此在海外的竞争情况比较没有这么剧烈。
1985年至1987年国内发生的经济不景气导致国内几家主要百货公司与超级市场集团倒闭，当时佳源食品集团的客户全在国内，而其主要客户也都是这些百货公司或超级市场集团。有关集团的倒闭使到佳源集团的业务几乎停顿。惟后来有惊无险地度过。
但是，1997年的经济风暴却为佳源食品集团带来商机。政府将令吉兑美元汇值固定在3.80令吉兑1美元，使到出口公司占了有利地位，因为令吉的贬值使出口公司的产品在外国市场更具竞争力。颜添财抓紧这个机会，集团集中精力，开发一些适合外销的产品，开拓新的市常最近政府撤销令吉兑美元固定汇率，使用有管理浮动利率政策，令吉汇值稍微上升，但对该集团影响不大。
颜添财说，我国有很多传统食品，只要经过适当的改变，就可以介绍给外国。该集团过去努力把各民族现有的传统食品，改变成超越种族的食品，即是所有大马人都喜爱的食品，而烙饼（roti canai）就是一个很好的例子。他说，他专长技术与市场开发，他的主要任务是开发机械化的生产方法，以取代人工，并选择适当的大马食品介绍到外国市常通过研究与实验，集团的产品就有更好条件打进市场，不论是在国内或外国。
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
The major shareholder of Kawan Food is its founder and chairman Datuk Gan Thiam Chai who has a 33.08% direct stake.
The second largest shareholder, Goshenite Ltd, currently holds a 23.84% equity interest in the company and is an existing customer. This is the vehicle of Nareshchandra Gordhandas Nagrecha. Goshenite acquired its stake in August 2009 from Kilat Kaca Sdn Bhd, whose owners are Datuk Ibrahim Ahmad and Tan Sri Mohd Ibrahim Mohd Zain, who sit on the board of Brahim’s Holdings Bhd.
http://www.thestar.com.my/Business/Business-News/2014/06/28/Kawan-Food-turns-up-the-heat-New-RM100mil-factory-will-spearhead-growth-over-next-15-years/?style=biz June.2014
The counter has risen about 130% in a year’s time to RM2.15. Apart from the recent results announcement and expansion plans, Fang said he is not aware of any other corporate developments.
http://www.thestar.com.my/Business/Business-News/2014/06/28/Kawan-Food-turns-up-the-heat-New-RM100mil-factory-will-spearhead-growth-over-next-15-years/?style=biz June.2014
“We want to keep borrowings to a minimal which is why we want to move cautiously. Less than 50% of the plant’s costs will be from borrowings,” Fang says.
“We are looking to introduce new products in new categories that could have a lot more potential in Malaysia and other countries,” Fang says.
“The main thrusts are to develop our existing markets, and penetrate some new ones like South America and Africa. We are trying to be a bit more aggressive,” says Fang.
http://www.thestar.com.my/Business/Business-News/2014/06/28/Kawan-Food-turns-up-the-heat-New-RM100mil-factory-will-spearhead-growth-over-next-15-years/?style=biz June.2014
On the R&D front, on-going efforts to improve on existing products and develop new products is being placed under KFB co-owner, Executive Chairman, Mr. Gan Thiam Chai‘s supervision to ensure that the group maintains its lead in its core product categories.
(inter Pacific Aug.2014)
Kawan Food Bhd ( Financial Dashboard) non-independent executive director Timothy Tan Heng Han, 34, has been re-designated as managing director (MD) of the frozen food manufacturer.
In a filing with Bursa Malaysia today, it was revealed that Tan, who is also the deputy general manager of exports for Kawan Food Manufacturing Sdn Bhd which is a subsidiary of Kawan Food, will be taking on the role of MD. Tan is the son-in-law of Kawan Food executive chairman Gan Thiam Chai, and his wife Kwan Sok Kay who is an executive director in the company. Both Gan and Kwan are substantial shareholders of Kawan Food, with some 39.12% of shareholdings.
http://www.theedgemarkets.com/my/article/timothy-tan-re-designated-kawan-food-md May.2015
Like most export-oriented companies in Malaysia, Kawan Food has benefited from the weaker ringgit against the greenback since last September given that most of its export transactions are in US dollars, says Fang. Nevertheless, he points out that the difference in foreign exchange has not been a significant factor in its improved performance.
“We’re just concerned that down the line, with the expansion going on now, there will be a lot of the equipment that we will buy in US dollars. In that sense, there is some balancing there. But it is fortunate that our revenue from exports is growing quite well, so I think that will help to neutralise the impact of these purchases,” explains Fang.
http://www.theedgemarkets.com/my/article/kawan-food-pick-tempo-overseas April.2015
Its largest shareholder is Gan with 32.81% equity interest while Goshenite Ltd holds 23.65%.
http://www.theedgemarkets.com/my/article/kawan-food-pick-tempo-overseas April.2015
Kawan Food Bhd ( Financial Dashboard) founder and chairman Datuk Gan Thiam Chai has sold some 3.5 million shares in the company for RM6.37 million. In a filing with Bursa Malaysia today, Kawan Food said Gan disposed of 3.537 million shares, equivalent to a 1.93% stake at RM1.80 apiece on April 8, via a direct business transaction. Following the disposal, Gan still has 56.4 million shares or a 30.84% stake in the manufacturer of frozen Asian food delicacies.
The stock closed one sen or 0.52% lower at RM1.92 today, translating into a market capitalisation of RM352.94 million.
http://www.theedgemarkets.com/my/article/kawan-food-chairman-sells-2-stake-rm637-mil April.2015
Frozen Asian food delicacies manufacturer Kawan Food Bhd ( Financial Dashboard) saw 6.11 million shares or a 3.33% stake in the firm traded off market today(Goshenite), at a total value of RM10.99 million. According to Bloomberg data, Kawan Food’s (fundamental: 3.0; valuation: 1.1) shares were moved in seven blocks of various sizes at RM1.80 per share.
Kawan Food rose 2 sen or 1.06% to close at RM1.91 today, with a total of 148,000 shares done, for a market capitalisation of RM350 million.
http://www.theedgemarkets.com/my/article/kawan-food-sees-333-stake-trade-market April.2015
佳源食品宣布，执行董事关淑纪（译音）以每股1.80令吉，脱售600万股，相等于3.27%的股权。根据文告，她是在4月22日（上周三）卖出手中部分股权，将持股率减至4.96%。目前，关淑纪直接持有佳源食品的909万750股。相比今天1.89令吉的闭市价，上述交易价相等于是4.76%的折价。
Substantial shareholders of Kawan Food Bhd ( Financial Dashboard) are trimming their equity stake in the frozen food manufacturers to take advantage of the rally on its share price. The filings to Bursa Malaysia today show two substantial shareholders have sold a combined 2.2% stake or four million shares.
Major shareholder Gan Thiam Hock, who is the executive director of Kawan Food, sold three million shares at RM1.80 per share yesterday (May 11), paring his interest to 11.99 million shares or 6.5% stake in Kawan Food.
Meanwhile, another substantial shareholder, Japanese-based Goshenite Limited, has also sold one million shares at the same price yesterday, paring its interest to 36.1 million shares or 19.7% equity stake in Kawan Food. Goshenite had disposed 6.1 million shares or 3.3% stake in the firm last month (April), also at the same price via off market transaction.
Meanwhile, another substantial shareholder, Japanese-based Goshenite Limited, has also sold one million shares at the same price yesterday, paring its interest to 36.1 million shares or 19.7% equity stake in Kawan Food. Goshenite had disposed 6.1 million shares or 3.3% stake in the firm last month (April), also at the same price via off market transaction.
http://www.theedgemarkets.com/my/article/major-shareholders-trim-stakes-kawan-food May.2015
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4736973 May.2015
Kawan Food Bhd’s 54-year-old chief executive officer (CEO) Jon Fang Nee Choong has resigned, citing early retirement as his reason. According to the group’s filing with Bursa Malaysia yesterday, Fang had been CEO of Kawan Food since March 1, 2010.
The company is now led by its MD, Timothy Tan.
http://www.theedgemarkets.com/my/article/kawan-food-ceo-jon-fang-quits-early-retirement?type=Markets August.2015 - FY2015
Kawan Food Bhd’s 54-year-old chief executive officer (CEO) Jon Fang Nee Choong has resigned, citing early retirement as his reason. According to the group’s filing with Bursa Malaysia yesterday, Fang had been CEO of Kawan Food since March 1, 2010.
The company is now led by its MD, Timothy Tan.
http://www.theedgemarkets.com/my/article/kawan-food-ceo-jon-fang-quits-early-retirement?type=Markets August.2015 - FY2015
In Apr and May this year, the major shareholders Gan and Naresh placed out
around 20m Kawan shares at RM1.80/share, mainly to institutional
shareholders. The company has indicated two reasons for placing out the
shares, 1) to improve the stock’s trading liquidity, and 2) the funds raised from
the sale of shares by Gan and Naresh have led to the conversion of outstanding
Kawan warrants into outstanding shares. Since Apr, around 18m new shares
were issued from the warrant conversion.
Kawan’s outstanding warrants are expiring in Jul 2016, with an exercise price of RM0.93. Assuming all warrants are converted, Kawan’s issued share base would rise to 269.6m shares.
(CIMB June.2015)
The company is controlled by executive chairman Gan Thiam Chai and his family with 39.02% stake.
Gan, 61, has 30 years of experience in the food processing industry, while non-independent non-executive director Nareshchandra Gordhandas Nagrecha, 64, is also well-versed in the food sector, as he jointly owns Canada incorporated Rubicon Food Products Ltd that produces and distributes the Rubicon range of drinks as well as imports and distributes Shana range of frozen vegetables and flat bread to North America.
http://www.thestar.com.my/business/business-news/2015/12/05/kawan-food-on-a-roll-with-strong-us-dollar/ December2015 - FY2015
Kawan’s outstanding warrants are expiring in Jul 2016, with an exercise price of RM0.93. Assuming all warrants are converted, Kawan’s issued share base would rise to 269.6m shares.
(CIMB June.2015)
The company is controlled by executive chairman Gan Thiam Chai and his family with 39.02% stake.
Gan, 61, has 30 years of experience in the food processing industry, while non-independent non-executive director Nareshchandra Gordhandas Nagrecha, 64, is also well-versed in the food sector, as he jointly owns Canada incorporated Rubicon Food Products Ltd that produces and distributes the Rubicon range of drinks as well as imports and distributes Shana range of frozen vegetables and flat bread to North America.
http://www.thestar.com.my/business/business-news/2015/12/05/kawan-food-on-a-roll-with-strong-us-dollar/ December2015 - FY2015
Growth/Strategy
颜添财说，在全球化的时代里，产品竞争越来越剧烈是可预期的，因此，佳源食品集团目前也考虑在海外设立食品工厂，以便能在较低生产成本情况下生产，加强其竞争优势。该集团考虑设厂的地点包括中国、印度以及印尼。不过，有关设厂的时机还未成熟，在成熟时集团将作出决定。
他说，目前，国内一些半人工与半机械化的工厂，也制造冷冻印度煎饼，并有少量出口。在海外方面，目前的竞争还不算强，印度、巴基斯坦也有制作冷冻印度煎饼，不过，它们的规模都没有佳源食品集团那么大，而机械也没有这么现代化。
http://www.eduzhai.net/gushi/465/gushi_159016.html Year 2007
Kwan Food Bhd, which has two factories in Shah Alam, will be consolidating its operations under one roof, by the end of 2015. The RM100mil exercise will see Kawan Food relocating its operations to a 15-acre site in Pulau Indah, Port Klang. “We hope to be able to move in, in the third quarter of 2015,” chief executive officer Jon Fang tells StarBizWeek.
The new factory, which will cater to the company’s growth needs over the next 15 years, will surpass the combined size of its two existing factories in Shah Alam by almost five times. It will feature state-of-the-art equipment including a modern warehousing system. “We will also have a new art refrigeration system that is environmentally friendly,” he says.
This expansion will see Kawan Food progressively spending around RM100mil over three to four years. Fang adds that the factory will be funded through internal funds as well as some borrowings, although he noted that Kawan Food would borrow less than 50% of the total cost. “We want to keep borrowings to a minimal which is why we want to move cautiously. Less than 50% of the plant’s costs will be from borrowings,” he says.
The Pulau Indah factory will enable Kawan Food to increase capacity in its existing products, as well as leave room for new products. “We are looking to introduce new products in new categories that could have a lot more potential in Malaysia and other countries,” he says.
Fang says physical construction on the new factory in Pulau Indah will most likely commence in August. “We have just completed the foundation,” he adds.
“The main thrusts are to develop our existing markets, and penetrate some new ones like South America and Africa. We are trying to be a bit more aggressive,” says Fang. Kawan Food exports at least 70% of its manufactured volume to over 20 countries, but mainly to the United States, UK, Australia. New Zealand and the Gulf countries.
http://www.thestar.com.my/Business/Business-News/2014/06/28/Kawan-Food-turns-up-the-heat-New-RM100mil-factory-will-spearhead-growth-over-next-15-years/?style=biz June.2014
According to the Frozen Food Market Analysis statistics, demand for frozen food was valued at USD224.74 billion in 2012 and is
expected to reach USD293.75 billion by 2019, growing at a CAGR of 3.9% from 2013 to 2019. The global market for frozen food
witnessed growth due to the growing demand for faster-to-prepare foods and due to new product launches in the market. In
addition, strong demand from emerging economies is another factor contributing to the market growth. Government intervention
and regulations are major restraints for the market’s growth. However, frozen foods made with natural and organic ingredients
provide huge market opportunities for manufacturers.
In 2012, Europe and North America had the largest share of 39.5% and 26.3% respectively in the global frozen food market. This
dominance is driven by increased preference towards convenience foods, food safety concerns, and the busy lifestyle. The Asia
Pacific market is estimated to be another attractive market for frozen food because of the healthy growth rate and increasing
consumer preference towards frozen food. Hence, the market for chilled and frozen foods is growing worldwide, as consumers
move towards convenience foods and “Home Meal Replacements” to cope with their increasingly busy lifestyles.
(inter Pacific Aug.2014)
In Malaysia, KFB have been operating from 2 manufacturing facilities, one in Section 15, Shah Alam for more than 10 years, and
another factory is located in Section 16, Shah Alam. A RM100million expansion exercise will see Kawan Food relocating operations
at both these plants to a 15-acre site in the Selangor Halal Hub in Pulau Indah, Port Klang, hopefully in the third quarter of 2015.
These facilities will allow KFB to consolidate operations under one roof, increasing capacity while at the same time enhancing
efficiency and control apart from meeting Kawan Food’s business growth needs for the next 10 to 15 years. Capacity is expected to
surpass the combined size of its two existing factories in Shah Alam by almost five times. Hence, this would also enable the Group to
increase capacity in its existing products, as well as offering extra space to introduce products in new categories in the near future
that could have a lot more potential in Malaysia and other countries.
(inter Pacific Aug.2014)
In addition to developing the Group’s existing markets, upcoming plans are to aggressively penetrate some new ones like South America and Africa, with the possibility of slowly developing the non-Asian ethnic groups market being the major challenge going forward.
(inter Pacific Aug.2014)
On the business front, the Group will continuously build the KAWAN brand in key markets through both above- and below-the-line
activities. The Group had recently launched a new brand in the USA to cater to a different segment of the market which had
previously not been tapped by KFB’s existing distribution setup. On the other hand, KFB is confident that the Nantong operations
with an able management team, will continue to grow significantly in China. On the R&D front, on-going efforts to improve on
existing products and develop new products is being placed under KFB co-owner, Executive Chairman, Mr. Gan Thiam Chai‘s
supervision to ensure that the group maintains its lead in its core product categories.
There will be renewed focus and investment on
all fronts to develop the European market which Kawan Food believes holds potential in the medium to long term.
Going forward,
the Group will also be spending more on research and development and investing in building KFB’s brand. In some product areas
KFB is diversifying into, it spends about 5% to 7% of its revenue on advertising and promotion. Ultimately, KFB’s main priority is still
in the direction of maintaining its core strength in frozen foods.
(inter Pacific Aug.2014)
In addition to developing the Group’s existing markets, upcoming plans are to aggressively penetrate some new ones like South America and Africa, with the possibility of slowly developing the non-Asian ethnic groups market being the major challenge going forward.
(inter Pacific Aug.2014)
KFB focuses on 3 emerging markets, China, India and Indonesia. As mentioned above,
KFB owns production facilities at three (3) locations (2 in Malaysia and 1 in China) with a total of 415
employees. The factory in China currently supplies to the local market and sales are trending on a positive
note. KFB’s R&D team is constantly improving on existing products and also producing new products that
are healthy and convenient. In 2013, KFB had acquired a piece of land located at the Selangor Halal Hub in
Pulau Indah to pave way for further expansion plans. The reasons behind the opening of a new factory are
to ensure KFB is a step ahead of its competitors as well as to improve efficiency. With the opening of a new
factory which is expected to be complete around 2H2015, production capacity will be increased by three
folds enabling KFB to enjoy economic of scale.
(BIMB Sept.2014)
Further to the announcement made by the Company on 30 December 2011 regarding the acquisition of a piece of leasehold halal industrial land in the Selangor Halal Hub, Pulau Indah, Pelabuhan Klang, Selangor Darul Ehsan ("the said Property") by its wholly-owned subsidiary, Kawan Food Manufacturing Sdn Bhd ("KFMSB"), the Board wishes to announce the commencement of the construction of a new plant consisting of a two storey frozen food factory and a three storey office on the said Property at a total consideration of RM98,714,344 ("the New Plant").
The New Plant will enable KFMSB to overcome space shortage at the two existing factories in Shah Alam. Upon completion of the construction of the New Plant, KFMSB will relocate the two existing facilities in Shah Alam to the said Property.
The New Plant will enable the Kawan Food Group to centralise its Malaysia manufacturing operations in an area designated for the manufacturing of halal foods, and to improve its overall efficiencies. It will also cater for the future expansion plans of the Kawan Food Group including an increase in production capacity for existing products and addition of equipment to produce new products.
The current capacity of the two existing factories in Shah Alam is 10,000,000 kg per annum. When the New Plant is completed the production capacity will be increased to 35,000,000 kg per annum. The construction of the New Plant is expected to commence in October 2014 and barring any unforeseen circumstances will be expected to complete by July 2015.
The capital commitment for the New Plant as at to-date amounted to RM83,499,937. The construction of the New Plant will be financed partly by borrowings of RM40 million and the balance by internally generated funds.
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1105161 Oct.2014
While the frozen flatbread manufacturer’s growth over the last few years has been spurred by both the domestic and export markets, Fang expects to see more robust growth coming from overseas going forward.
Kawan Food director of international business Timothy Tan, who was also present at the interview, says there is much room for growth, particularly in European countries.
He believes the products, being halal certified, will give the company an edge when it comes to marketing them to the growing Muslim community from North America and Middle East who have settled down in Europe.
http://www.theedgemarkets.com/my/article/kawan-food-pick-tempo-overseas April.2015
It plans to introduce more value-added food, or higher-convenience-level food, when it moves into its new facility in Pulau Indah, Selangor, by the end of this year.
“Now you have to cook the flatbreads, but once we have the new facility, we are going to move into higher convenience. Rather than having to cook it in its raw form, it (the new product) can be reheated in an oven or in some instances, in a microwave,” explains Fang.
“Generally, our direction going forward is to have more value-added products and higher-convenience-level food offerings. So these will provide the company with more growth on top of our existing products.”
Kawan Food’s existing facilities are near their maximum production capacity, thus the need for the new facility in Pulau Indah. The new facility will have about five times the existing capacity of its two facilities in Shah Alam, says Fan.
“Fingers crossed, it should be fully commissioned by next year and then, all these new products will come in,” he adds.
http://www.theedgemarkets.com/my/article/kawan-food-pick-tempo-overseas April.2015
When asked if there are any plans to increase liquidity, Fang says the company is exploring fundraising for its new facility. “For the expansion of the new facility, there will be a split between going for debt and equity. If we can have a good balance, then we don’t have to pay so much bank interest, especially in this age of uncertainty. We are still working on this,” says Fang.
http://www.theedgemarkets.com/my/article/kawan-food-pick-tempo-overseas April.2015
(BIMB Sept.2014)
Further to the announcement made by the Company on 30 December 2011 regarding the acquisition of a piece of leasehold halal industrial land in the Selangor Halal Hub, Pulau Indah, Pelabuhan Klang, Selangor Darul Ehsan ("the said Property") by its wholly-owned subsidiary, Kawan Food Manufacturing Sdn Bhd ("KFMSB"), the Board wishes to announce the commencement of the construction of a new plant consisting of a two storey frozen food factory and a three storey office on the said Property at a total consideration of RM98,714,344 ("the New Plant").
The New Plant will enable KFMSB to overcome space shortage at the two existing factories in Shah Alam. Upon completion of the construction of the New Plant, KFMSB will relocate the two existing facilities in Shah Alam to the said Property.
The New Plant will enable the Kawan Food Group to centralise its Malaysia manufacturing operations in an area designated for the manufacturing of halal foods, and to improve its overall efficiencies. It will also cater for the future expansion plans of the Kawan Food Group including an increase in production capacity for existing products and addition of equipment to produce new products.
The current capacity of the two existing factories in Shah Alam is 10,000,000 kg per annum. When the New Plant is completed the production capacity will be increased to 35,000,000 kg per annum. The construction of the New Plant is expected to commence in October 2014 and barring any unforeseen circumstances will be expected to complete by July 2015.
The capital commitment for the New Plant as at to-date amounted to RM83,499,937. The construction of the New Plant will be financed partly by borrowings of RM40 million and the balance by internally generated funds.
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1105161 Oct.2014
While the frozen flatbread manufacturer’s growth over the last few years has been spurred by both the domestic and export markets, Fang expects to see more robust growth coming from overseas going forward.
Kawan Food director of international business Timothy Tan, who was also present at the interview, says there is much room for growth, particularly in European countries.
He believes the products, being halal certified, will give the company an edge when it comes to marketing them to the growing Muslim community from North America and Middle East who have settled down in Europe.
http://www.theedgemarkets.com/my/article/kawan-food-pick-tempo-overseas April.2015
It plans to introduce more value-added food, or higher-convenience-level food, when it moves into its new facility in Pulau Indah, Selangor, by the end of this year.
“Now you have to cook the flatbreads, but once we have the new facility, we are going to move into higher convenience. Rather than having to cook it in its raw form, it (the new product) can be reheated in an oven or in some instances, in a microwave,” explains Fang.
“Generally, our direction going forward is to have more value-added products and higher-convenience-level food offerings. So these will provide the company with more growth on top of our existing products.”
Kawan Food’s existing facilities are near their maximum production capacity, thus the need for the new facility in Pulau Indah. The new facility will have about five times the existing capacity of its two facilities in Shah Alam, says Fan.
“Fingers crossed, it should be fully commissioned by next year and then, all these new products will come in,” he adds.
http://www.theedgemarkets.com/my/article/kawan-food-pick-tempo-overseas April.2015
When asked if there are any plans to increase liquidity, Fang says the company is exploring fundraising for its new facility. “For the expansion of the new facility, there will be a split between going for debt and equity. If we can have a good balance, then we don’t have to pay so much bank interest, especially in this age of uncertainty. We are still working on this,” says Fang.
http://www.theedgemarkets.com/my/article/kawan-food-pick-tempo-overseas April.2015
KFB will consolidate its operation
from Shah Alam section 15 and section 16 to a new
factory in Pulau Indah. The new factory will have a
production capacity five times that of its existing plants
in Shah Alam.
Currently KFB derives 60% of its sales
from overseas markets and we expect this to improve
further once their capacity is enhance.
(BIMB April.2015)
KFB owns production facilities at three (3) locations. Two in Malaysia and one in
China. The factory in China currently supplies to the local market and sales are trending on a
positive note. In Malaysia, KFB have been operating from two (2) manufacturing facilities in Shah
Alam, Section 15 and Section 16. In 2013, KFB had acquired a 15-acre site in the Selangor Halal
Hub in Pulau Indah, Port Klang for further expansion plan. The new plant consisting of a two (2)
storey frozen food factory (1st floor: flour based food, 2nd floor: food processing) and a three
storey office.
记录一下，2014股东大会重点。
Kawan intends to consolidate its existing operations to a new 15-acre factory in Pulau Indah, Port Klang. Once completed by end-2015, its production capacity will be five times that of its existing plants.
While it took Kawan six years to double its revenue from 2008, we expect the company to be able to double its revenue again in the next three years, thanks to its new production facility. If successfully secured, the tax incentives of setting up operations in SHH could result in minimal taxes being paid in the next three years, boosting the bottom line.
Export sales, mostly in US dollar, make up about 60% of revenue, while raw materials like flour are mostly denominated in ringgit. As such, a weaker ringgit is favourable to the company.
MEMORANDUM OF UNDERSTANDING MEMORANDUM OF UNDERSTANDING BETWEEN KAWAN FOOD (NANTONG) CO., LTD ("KFN") WITH WAN ZONG PU, XUAN ZHENG MIAO AND ZHANG LI XIA FOR THE PURPOSE OF ESTABLISHING A JOINT VENTURE AND TO SET UP A JOINT-VENTURE COMPANY (THE JV COMPANY) FOR THE BUSINESS PRODUCTION AND SALE OF HALAL MEAT DUMPLINGS AND OTHER HALAL FROZEN FOOD PRODUCTS
Future growth will be underpinned by its capacity expansion exercise — to be completed by end-2015 — which will see overall production capacity increase by a significant 250% to 35 million kg per year.
The domestic market was the largest revenue contributor in 9MFY15, but revenue inched down 0.9% yoy. This is one of the rare few times where domestic revenue slid. Even during the 2008-2009 global financial crisis, domestic sales were up yoy. North America, the second-largest market, saw sales rise by 20% yoy to RM39.9m in 9MFY15. Europe posted the fastest growth in 9MFY15, with sales rising by 24% yoy.
Kawan Food’s indirect wholly owned subsidiary, Kawan Food (Nantong), recently entered into a joint venture to participate in the business of halal meat dumplings and other frozen food products to the Chinese and international markets.
In FY14, the group launched tortillas which have seen a strong increase in demand due to its flexibility and also ease of use. The group also highlighted that there will also be renewed focus and investment on all fronts to develop the European market, which we believe is a move in line with the new product launch. The strategic approach towards the European market appears to have been successful thus far, with revenue from the Europe segment increasing 23.8 percent for 9M15.
The new plant in Pulau Indah will enable KFB to overcome space
constrain at the two existing factories in Shah Alam. Upon completion of the new plant, KFB will
consolidate the two existing facilities in Shah Alam to the new plant. The new plant will increase
KFB efficiency as it enables KFB to centralise its Malaysia manufacturing operations. In addition,
the new plant will help KFB cater for the future expansion plans as such introduce products in new
categories in the near future that could have huge potential in Malaysia and other countries,
increase the production capacity for its existing products and reduce overall food manufacturing
cost. Barring any unforeseen circumstances will be expected to complete by March 2016.
(BIMB April.2015)
记录一下，2014股东大会重点。
首先要说的是，我对颜老板非常好。言谈举止让人感觉踏实。对股东的提问也很耐心解答。
- 新的工厂预期2015年末完工，同时新的生产线开跑
- 颜老板下个月将亲自到欧洲，把生产机械引进新工厂安装
- 颜老板预期新工厂的产量将大于媒体报导的3-5倍于现工厂
- 颜老板早前套现基金以把资本投入新工厂，他也透露这工厂其实本身已暗自筹划数十年之久
- 新工厂大约600，000sf，highly自动电脑化，大都使用欧洲顶尖科技和设计，Green Building Index compliance,environment friendly。冷冻部占去1/3。共有11个loading bay供内销和外销使用。
- 为什么要建新工厂？现有的shah alam工厂已经24x7，不足以应付需求和扩充。
- 新工厂将设central kitchen。公司将推出许多新产品，主要是consumer friendly food,ready-cooked。新产品包括PARATHA只要heated就可以吃了，还有炒饭，炒面，意大利面等等。
- 公司会把全部生产线consolidate到新厂，至于旧工厂公司应该会保留着来出租（可能拿来出租于joint venture生意）
- 颜老板非常重视R&D。他说类似汤圆吃下去的口感，比其他公司产品更耐煮等等都是他研发的成果。
- 公司会慎重考虑about liquidity，已有数间基金approach公司要参股，所以才会看到之前数位大股东脱售部分股票。
最后，老板说希望股东可以最少抱着朋友两年，朋友一定不会让大家失望。
Annual General Meeting 2014 notes (29.May.2015)
Kawan intends to consolidate its existing operations to a new 15-acre factory in Pulau Indah, Port Klang. Once completed by end-2015, its production capacity will be five times that of its existing plants.
http://www.theedgemarkets.com/my/article/stock-momentum-kawan-food June.2015 - FY2015
The domestic market makes up the largest share of the group’s revenue at 40%, while the United States is its largest export market at 30% of group revenue.
Kawan is currently constructing a RM100 million factory in the Selangor Halal Hub (SHH) in Pulau Indah, off Selangor. When ready by year-end, the new freezer warehouse would be five to six times larger than its existing factories in Shah Alam, Selangor.
Kawan is currently constructing a RM100 million factory in the Selangor Halal Hub (SHH) in Pulau Indah, off Selangor. When ready by year-end, the new freezer warehouse would be five to six times larger than its existing factories in Shah Alam, Selangor.
The management is banking on the new facility to help it target new markets and develop new products. The company is funding the plant’s construction via internal funds and from warrant conversions.
Export sales, mostly in US dollar, make up about 60% of revenue, while raw materials like flour are mostly denominated in ringgit. As such, a weaker ringgit is favourable to the company.
http://www.theedgemarkets.com/my/article/kawan-food-will-thrive-during-difficult-economic-times June.2015 - FY2015
目前，佳源食品工廠的生產線和倉庫已呈現飽和狀態，集團相信在英達島（Pulau Indah）新工廠竣工和投產後，將可提振產能，並帶來比現有倉庫多5倍的儲藏空間。
佳源食品管理層說，新冷藏倉可容納1萬6千個集裝架，但集團僅會使用6千個，將探討出租額外空間可能。聯昌研究估算，若佳源食品成功出租其餘空間，將可帶每年800萬至1千萬令吉額外營業額。
此外，佳源食品將在新廠房設有熱壓機，以及隧道式烤爐來處理全熟和半熟食品，而後者將可為公司開拓快餐店，甚至是飛機餐市場商機，同時公司也計劃在工廠明年投入運作後，開設自家的零售店，甚至是打進鎖定便利商店的現成食品市場。
http://biz.sinchew.com.my/node/118027?tid=18 June.2015 - FY2015
Kawan’s operations at the existing
factories are currently facing
production and warehouse constraints.
The factories are running close to full
capacity, and new orders will take two
months to complete and another 1-2
months to be shipped overseas. In
addition, there is also not enough
space at the current warehouse (which
can handle 2,600 pallets). These problems should be resolved when the
new factory in Pulau Indah is up and
running. The new freezer warehouse
alone has more than 5x the size of its
existing factories and additional lines
at the new factory should boost
production capacity.
The company’s new freezer warehouse
can handle 16,000 pallets and
management has indicated that it will
use a pallet size of 6,000 and will look
to rent out the extra space. We
estimate that if Kawan can rent out
the remaining space, this could boost
revenue by RM8m-10m annually.
Kawan will have a new hot press line
and tunnel oven to cook or partially
cook products like roti paratha and
chapatti (currently, the roti paratha
and chapati produced are raw).
Partially cooked products should
enable Kawan to target the quick-
service restaurants and possibly the
airlines too. Kawan is also targeting
ready-made meals for the convenience
stores and has plans to set up its own
retail outlets when the new factory is
up and running next year.
(CIMB June.2015)
When the new factory is up and running, the company will gradually move its
existing Shah Alam production facilities to the Pulau Indah plant. The company
has indicated that it will sell the 1.8-acre Section 15 industrial plant. At
RM150/sq ft, the company could get RM11m-12m for this land.
However, management is still undecided on the 6.5-acre Section 16 land, which is located just beside I-Berhad’s (IBHD MK, Non Rated) project in Shah Alam. The company might develop this piece of land if the offer price for this piece of land is not attractive enough. Management indicated that it has no plans to diversify into property development. At RM150/sq ft, the company could get around RM42m for its Section 16 land. We have not assumed the sale of the Shah Alam factories in our earnings forecasts.
(CIMB June.2015)
However, management is still undecided on the 6.5-acre Section 16 land, which is located just beside I-Berhad’s (IBHD MK, Non Rated) project in Shah Alam. The company might develop this piece of land if the offer price for this piece of land is not attractive enough. Management indicated that it has no plans to diversify into property development. At RM150/sq ft, the company could get around RM42m for its Section 16 land. We have not assumed the sale of the Shah Alam factories in our earnings forecasts.
(CIMB June.2015)
Kawan Food (Kwana) is building a RM100m factory in the “Selangor Halal
Hub” (SHH) at Pulau Indah which is expected to be completed by year-end.
Full commercial production is targeted to start in 1Q16. This comes at an
important time for the company as its existing Shah Alam factories are already
running at full capacity. The new factory will boost the company’s warehouse
freezer space by 16,000 pallets (from the 2,600 currently), more than five-fold
increase. The new warehouse should help ease production constraints as the
company is currently facing a shortage of freezer warehouse space. In 2014,
Kawan spent RM1.1m (RM0.5m in 2013) to rent additional coolroom space.
The company is looking to use 6,000sf of freezer space at the new factory, while
the remaining 10,000sf would be rented to other MNCs. The additional
warehouse space should help boost production volume (current operations are
constrained by the lack of warehouse space).
(CIMB June.2015)
(CIMB June.2015)
MEMORANDUM OF UNDERSTANDING MEMORANDUM OF UNDERSTANDING BETWEEN KAWAN FOOD (NANTONG) CO., LTD ("KFN") WITH WAN ZONG PU, XUAN ZHENG MIAO AND ZHANG LI XIA FOR THE PURPOSE OF ESTABLISHING A JOINT VENTURE AND TO SET UP A JOINT-VENTURE COMPANY (THE JV COMPANY) FOR THE BUSINESS PRODUCTION AND SALE OF HALAL MEAT DUMPLINGS AND OTHER HALAL FROZEN FOOD PRODUCTS
- The parties shall enter into a joint venture to set up the JV Company, wherein the shareholding shall be 31% KFN, 25% Wan Zong Pu, 24% Xuan Zheng Miao, and 20%Zhang Li Xia.
- Business nature of the JV Company shall include but not limited to production and sale of halal meat dumplings and other frozen food products, wherein its products will not have any conflict with, or compete with the products of KFN.
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4876853 Sept.2015 - FY2015
Future growth will be underpinned by its capacity expansion exercise — to be completed by end-2015 — which will see overall production capacity increase by a significant 250% to 35 million kg per year.
With strong annual operating cash flows of RM27.3 million and net cash of RM32.8 million, equivalent to 16.1 sen per share; funding of the RM98.7 million capex programme should not be an issue. The company also plans to borrow RM40 million to part finance its capex.
http://www.theedgemarkets.com/en/node/239976 Nov.2015 - FY2015
The domestic market was the largest revenue contributor in 9MFY15, but revenue inched down 0.9% yoy. This is one of the rare few times where domestic revenue slid. Even during the 2008-2009 global financial crisis, domestic sales were up yoy. North America, the second-largest market, saw sales rise by 20% yoy to RM39.9m in 9MFY15. Europe posted the fastest growth in 9MFY15, with sales rising by 24% yoy.
Kawan is building a new factory in Pulau Indah, Selangor, which will be 5-6x the size of
the existing freezer warehouse. Expected to be up and running by end-1Q16, the new
factory and production line will allow the company to develop new products and target
new markets. Its existing plant is already running at full capacity.
Kawan’s balance sheet is healthy, with net cash of RM33m as at end-Sep. Its existing cash pile and proceeds from warrants (RM20m thus far in 9M15) should help fund most of the new factory's capex.
Kawan’s balance sheet is healthy, with net cash of RM33m as at end-Sep. Its existing cash pile and proceeds from warrants (RM20m thus far in 9M15) should help fund most of the new factory's capex.
(CIMB "Best Quarter Ever" - Nov.2015)
The
group’s new factory which is expected to be commissioned by the end of 1Q16
boasts a capacity of five times its existing factories in Shah Alam. The new
warehouse will be able to hold up to 16,000 pallets, several times more than
the current capacity of 2,600 pallets. The group expects inventory to occupy
6,000 pallets of the freezer space and the remaining storage space will be
rented out.
This
strategic move is likely to boost operating margins once operations from the
other facilities have been consolidated under its new plant.
In FY14, the group launched tortillas which have seen a strong increase in demand due to its flexibility and also ease of use. The group also highlighted that there will also be renewed focus and investment on all fronts to develop the European market, which we believe is a move in line with the new product launch. The strategic approach towards the European market appears to have been successful thus far, with revenue from the Europe segment increasing 23.8 percent for 9M15.
除了广告成本之外，佳源食品也面对其他营运成本压力，包括新工厂投入生产后，劳力和电力成本也将相对提高。另一个不利因素是令吉汇率走强，使佳源食品的海外销售面对汇率转换的损失。年初至今，令吉兑美元上升1.97%，至3.2140。
(资汇21.6.2014)
“Increasingly, we have been putting more into branding, both locally and in our export markets,” Fang says. It currently spends about 5% to 7% of its revenue on advertising and promotion. Going forward, the company will also be spending more on research and development. “We believe in investing into our brand,” he adds.
http://www.thestar.com.my/Business/Business-News/2014/06/28/Kawan-Food-turns-up-the-heat-New-RM100mil-factory-will-spearhead-growth-over-next-15-years/?style=biz June.2014
Implementation of minimum wages effective 2013 and also with the steep increase in
the electricity tariffs are just some of the developments that add to cost pressures.
(inter Pacific Aug.2014)
Competitors
(inter Pacific Aug.2014)
(inter Pacific Aug.2014)
Kawan’s EBITDA margin has been stable over the past few years, at 21-22%.
We believe that this is mainly due to relatively stable wheat prices over the past
few years. Cost of raw materials comprises around 65-70% of cost of sales (COS)
and COS makes up around 70% of total operating costs. In Malaysia, Kawan
gets its industrial flour from Australia, at market prices. Subsidised flour prices
are only for the local retailers. With more automated processes at the new
factory and use of less labour costs, Kawan’s EBITDA margin should trend
marginally higher from 2016 onwards. Management has indicated if there was
a hike in raw material prices, it could pass the higher costs to its customers.
(CIMB June.2015)
(CIMB June.2015)
Kawan’s
RM100m new factory will be funded by internal funds and conversion of warrants.
The company has already invested RM30m-40m in land and machinery in the past
two years, and needs another RM60m to complete and equip the new factory. The
balance of net cash is around RM30m and operational cash flow this year is over
RM20m. We are expecting an additional RM20m cash to come in this year from
warrant conversions (expiring in Jul 2016). As such, the company should not
need any borrowings to fund the new factory.
(CIMB June.2015)
(inter Pacific Aug.2014)
The
domestic market remains Kawan’s main revenue contributor at about 40% of group
revenue. There are currently no industry statistics on the domestic and export
frozen paratha and chapati markets. In Malaysia, Kawan is the largest player in
this frozen market segment and domestic competitors include Kart and Star Kiss.
OL Resources’ (QLG MK, Add) FIGO brand, also distributes frozen food products
but it focuses mainly on frozen seafood products.
Our visits to a few hypermarkets in
the Klang Valley reveal that Kawan gets the most shelf space in the freezer
section (flour product section). In the export markets, Kawan’s competitors
include Pakistan’s Dawn, UAE’s Al Baker and other players from India and
Bangladesh. Major export markets for Kawan are the USA and elsewhere in Asia.
(CIMB June.2015)
Dividend佳源食品目前并没有订下派息政策，但过去4年均有派息，而过去2年皆派每股1.8仙。该公司2月28日已宣布派每股1.8仙中期股息和3.6仙特别股息，合计是每股5.4仙，比2013财政年的1.8仙高出200%，按6月11日的1.90收市价计算，其周息率只有2.84%，基本上没有太大吸引力。
(资汇21.6.2014)
Chart 4 (below) shows dividends declared from 2009 to 2013. On 12 June 2013, KFB paid an interim tax exempt dividend of 1.8 sen
per ordinary share totaling RM2.16 million, down from 2.4 sen in FYE Dec 2012 which nevertheless worked out at only 1.8 sen when
netted for 25% tax. On 15 April 2014, KFB paid an interim single tier dividend of 1.8 sen per ordinary share as well as a special single
tier dividend of 3.6 sen per ordinary share.
The
company does not have a formal dividend policy, but we are assuming a 30%
dividend payout ratio in our earnings forecast, similar to 2014’s payout ratio.
Once the new factory is up and running and with no more major capex plans, it
is possible the company could raise its dividend payout ratio.
(CIMB June.2015)
Corporate exercise
The Company proposes to undertake the following:
(i) a bonus issue of up to 90,000,000 new ordinary shares of RM0.50 each in Kawan (“Kawan Shares” or “Shares”) (“Bonus Shares”) on the basis of one (1) Bonus Share for every two (2) existing Kawan Shares held at an entitlement date to be determined later (“Entitlement Date”) (“Proposed Bonus Issue of Shares”); and
(ii) an increase in the authorised share capital of Kawan from RM100,000,000 comprising 200,000,000 Kawan Shares to RM500,000,000 comprising 1,000,000,000 Kawan Shares (“Proposed Increase in the Authorised Share Capital”).
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1111925 Sept.2014
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1119621 Oct.2014
On behalf of the Board, TA Securities wishes to announce that Bursa Securities had, vide its letter dated 23 October 2014 (which was received on 24 October 2014), approved the following:
(i) Listing and quotation of up to 90,000,000 Bonus Shares to be issued pursuant to the Proposed Bonus Issue of Shares;
(ii) Listing and quotation of up to 29,229,630 additional Warrants 2011/2016 (“Additional Warrants 2011/2016”) to be issued pursuant to the adjustment made arising from the Proposed Bonus Issue of Shares; and
(iii) Listing and quotation of up to 29,229,630 new Kawan Shares arising from the exercise of the Additional Warrants 2011/2016).
- Adjustment to the number and the exercise price of the warrants in Kawan Food Berhad (“Warrants”) made in accordance with the provisions under the Deed Poll constituting the Warrants dated 12 July 2011 (“Deed Poll”). The adjustment is consequential to a bonus issue of up to 90,000,000 new ordinary shares of RM0.50 each in Kawan Food Berhad (“Bonus Shares”), to be credited as fully paid-up, on the basis of 1 Bonus Share for every 2 existing Kawan Food Berhad ordinary shares held by entitled Kawan Food Berhad shareholders as at 5.00 p.m. on 22 December 2014 (“Bonus Entitlement Date”) (“Bonus Issue of Shares”).
For example, if Mr X purchases 200 KAWAN-WA shares on cum basis on 17 December 2014, Mr X should receive 200 shares on 22 December 2014. Consequent to a bonus issue, a total of 300 KAWAN-WA shares will be credited into Mr X's CDS account on the night of 22 December 2014 being the Book Closing Date. Therefore, Mr X can sell the KAWAN-WA shares of 300 on or after the Ex-Date ie from 18 December 2014 onwards."
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4415101 Dec.2014
Shareholding
Between April 8 and June 24, Kawan’s share base expanded by 15.05 million shares to 198.32 million shares. This warrant-diluted executive chairman and largest shareholder Gan Thiam Chai’s direct stake of 56.4 million shares from 30.84% to 28.44%. He is deemed interested in his spouse Kwan Sok Kay’s 9.09 million shares (just under 5%). There are about 70 million more warrants.
It is worth noting that non-executive director Nareshchandra Gordhandas Nagrecha, through Goshenite Ltd, sold 6.1 million shares on April 20 and another one million shares at RM1.80 apiece on May 11, paring his holding to 36.09 million shares or 18.2%.
Kawan has tight trading liquidity, 93% share base held by top 30 shareholders as at April 8 2015.
http://www.theedgemarkets.com/my/article/warrants-update-new-paratha-plant-may-lift-kawan-wa July.2015 - FY2015
Shareholding
Between April 8 and June 24, Kawan’s share base expanded by 15.05 million shares to 198.32 million shares. This warrant-diluted executive chairman and largest shareholder Gan Thiam Chai’s direct stake of 56.4 million shares from 30.84% to 28.44%. He is deemed interested in his spouse Kwan Sok Kay’s 9.09 million shares (just under 5%). There are about 70 million more warrants.
It is worth noting that non-executive director Nareshchandra Gordhandas Nagrecha, through Goshenite Ltd, sold 6.1 million shares on April 20 and another one million shares at RM1.80 apiece on May 11, paring his holding to 36.09 million shares or 18.2%.
Kawan has tight trading liquidity, 93% share base held by top 30 shareholders as at April 8 2015.
http://www.theedgemarkets.com/my/article/warrants-update-new-paratha-plant-may-lift-kawan-wa July.2015 - FY2015
Share price
佳源食品股价从去年（2013）3月1日的0.794令吉起跑，在15个月里猛涨1.106令吉或139%，至目前的2令吉左右。强劲的股价表现使到这只小型食品股引起市场关注。其本意比被大幅拉高及周息率被拉低。按目前的1.90令吉闭市价计算，佳源食品的本意比是13.22倍，相较于其他食品股不算便宜。
我们不妨以3只生产甜食品股来作评比，本意比较高的Apollo达11.69倍，OFI东方食品9.98倍和LONBISC8.54倍。至于周息率，Apollo以最高5.1%领先群雄，OFI和佳源食品分别以3.02%和2.58%紧随其后，而LONBISC只有1.2%。
(资汇21.6.2014)
The company’s warrants shot up 31% to 62 sen on June 12, spurring talk that a new investor could emerge. The warrants continued trending upwards, hitting a high of 74.5 sen on Wednesday. It closed the week at 70 sen. The counter has risen about 130% in a year’s time to RM2.15.
http://www.thestar.com.my/Business/Business-News/2014/06/28/Kawan-Food-turns-up-the-heat-New-RM100mil-factory-will-spearhead-growth-over-next-15-years/?style=biz June.2014
Note that the exercise price of the warrants has been reduced to 93 sen from RM1.40 subsequent to a one-for-two bonus issue that saw the issuance of 90 million bonus shares and 29.23 million new warrants.
Annualising its recent nine-month earnings per share of 12.63 sen, the shares are trading at about 9.14 times earnings based on their RM1.60 close last Monday. This isn’t very cheap or very expensive either, considering the group is sitting on a sizeable cash pile of RM34.38 million, which works out to 18.8 sen net cash per share.
Kawan Food’s relatively small market capitalisation of RM292.3 million may make it too small for some institutional investors. However, Lembaga Tabung Angkatan Tentera has a 4.99% stake in it. Its major shareholders are Datuk Thiam Chai Gan with a 32.8% stake and Nareshchandra Gordhandas Nagrechawho with 23.65%.
http://www.theedgemarkets.com/my/article/warrants-update-kawan-wa-may-benefit-weaker-ringgit March.2015
(CIMB June.2015)
(CIMB June.2015)
Bear case
Kawan is expected to complete the
construction of the new factory by end-2015 and commercial operations to start
in 1Q2016. However, there could be delays in approvals from the different
municipal authorities and this could lead to construction delays for the new
factory. Every one-month’s delay in the construction of the new factory in 2016
could hurt FY2016’s net profit by RM1.3m or 2.5% EPS.
(CIMB June.2015)
The company might not get the tax incentives offered in the “Selangor Halal
Hub”. However, we see no reason why the company should not enjoy the tax
incentives offered. Assuming the company fails to get the tax incentives, both
FY2016/17 net profit and EPS could fall by 20%.
The
company could face teething problems, running the lines at the new factory.
This could lead to higher start-up costs and delays in the starting of the
commercial production for the new factory.
The company could see some profit margin compression if prices of raw
materials rise. However, we believe Kawan should be able to pass on the higher
costs to its customers. Kawan’s main raw material is flour (transacted in RM)
and wheat prices have been moving sideways over the past few years. Assuming
flour prices rises by 10% and the company is unable to pass on the higher costs,
FY16/17 net profit could fall by around 9-11%.
Most
of its export sales are in US$ and based on our sensitivity analysis, every 1%
strengthening of the ringgit against the US$ could reduce Kawan’s FY2016/2017
EPS by 3%.
Bull case
Competitive strengths. The frozen food industry is a competitive industry with various market players both
domestically and internationally. In keeping abreast with the competition, KFB has established a wide
distribution network which covers the supermarkets, hypermarkets, and convenience stores. KFB has been
able to maintain a strong shelf presence across major supermarket and hypermarket throughout Malaysia
and this has helped to increase the awareness level of consumers. The group’s long unblemished track
record of more than 25 years adds towards contributing a competitive advantage over new entrants to the
industry.
Intensive R&D. KFB ensures consistency in its product quality, freshness and hygiene via its massive R&D
activities and automation of manufacturing processes. Ongoing automation has lessened the dependence
on labour force and raise productivity with high level of consistency of quality products.
High quality products. ISO22000:2005 demonstrate the ability to control food safety hazards in order to
consistently provide safe products. Kawan Food has also obtained the HACCP certification for its Roti
Paratha range in 2002. HACCP stands for Hazard Analsis & Critical control point system, is of great
significance as it is the highest standard of food manufacturing operation.
(BIMB Sept.2014)
(CIMB June.2015)
Riding on Halal certification. The Halal certificate by KFB has increased the competitive edge as it will
create the awareness of its products to Muslims worldwide especially within the South-East Asian countries
with large Muslim population.
(BIMB Sept.2014)
SWOT
Our SWOT analysis on Kawan indicates benefits from its first mover advantage. While competitors are still using older technology, the company has moved one step ahead of them by automating most of its processes (and reducing the use of manual labour). Management is targeting new markets and new products when the new factory starts commercial operations in 2016. Its balance sheet is strong; it would be in a net cash position even after the major capex for the new factory.
Our SWOT analysis on Kawan indicates benefits from its first mover advantage. While competitors are still using older technology, the company has moved one step ahead of them by automating most of its processes (and reducing the use of manual labour). Management is targeting new markets and new products when the new factory starts commercial operations in 2016. Its balance sheet is strong; it would be in a net cash position even after the major capex for the new factory.
(CIMB June.2015)
