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New stores, products and factory to fire Old Chang Kee's growth momentum

PC Lee
PC Lee5/31/2018 04:26 PM GMT+08  • 2 min read
New stores, products and factory to fire Old Chang Kee's growth momentum
SINGAPORE (May 31): Phillip Securities is keeping Old Chang Kee at “buy” given the curry puff and fried snacks seller continues to pay out more than 90% of its earnings in FY19, supported by increasing free cash flows.
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SINGAPORE (May 31): Phillip Securities is keeping Old Chang Kee at “buy” given the curry puff and fried snacks seller continues to pay out more than 90% of its earnings in FY19, supported by increasing free cash flows.

“We expect FY19E dividend to increase by 1 cent to 4 cents as free cash flows improve from $1.6 million in FY18 to $5.2 million,” says Phillip analyst Soh Lin Sin in a Thursday report.

Soh says the opening of new stores and product innovations will continue to drive topline growth. Old Chang Kee’s new factory will increase production capacity -- in terms of variety and volume -- to fuel their expansion strategy, and improve its margins via enhanced manufacturing efficiencies and cost savings from bulk purchasing.

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