Old Chang Kee (SGX:5ML) DCF Analysis
INTRODUCTION: OCK is one of the most popular fast-food chains in Singapore that began its business in Singapore. Most well known for their extraordinary Curry Puff, this is a well-loved homegrown brand. However, between the very niche Singaporean-centric menu and the low margins items OCK has much more problems to face in its path forward. REVENUE: My rationale when forecasting revenue came from, “Singaporeans have been eating more and more…it boils down to people being spoilt for choice and opting for convenience over health…people are more likely to grab dessert or a snack between meals, just because they can.”( SOURCE ) “98 percent of Singaporeans were found to snack, with 1-in-2 being frequent snackers”( SOURCE ) I opted to only account for Singapore’s outlets when forecasting. The revenue from OCK Singapore accounted for 99.5% of OCK’s entire revenue. When forecasting the Number of Outlets, from the 2023 Annual Report “However, with the re-opening of the economies...rental co...