Lakaffa “Global Expansions” and “Subsidiary IPO” will cause sales revenue growth

In the fourth quarter of 2017, La Kaffa (2732)’s revenue reached a record high with the benefit of the global expansion. The total revenue of the whole year last year reached 2.498 billion, which was also a record high. The institution’s investors mentioned that the La Kaffa EPS of last year is expected to be more than NT$5, which is better than the previous year’s performance. Looking forward, in addition to Chatime continuing global expansion, it is expected to increase by 200-300 new opened stores this year. The effects, brought by the cooperation with Re Light Management Co., Ltd. in China handmade beverage market, are expected to emerge gradually. In addition, the major revenue of La Kaffa in dining business for the past few years, including the Osaka Ohsho and beef noodles, will be aggressive in expanding the stores. The launch two or three dining brands is expected this year, either building our own brands or dealerships. And we will launch dining business IPO plans. It is planned to be listed on the TPEx Emerging Stock Board in middle of the year. Overall, La Kaffa consolidated revenues will continue to grow in double-digits this year.

La Kaffa mainly used to expand the beverage store of the Chatime brand globally. In recent years, it has also stepped into the food business. The brands include of Wagokoro Tonkatsu Anzu Ginza, Duan Chun Zhen beef noodle, TanYu, Osaka Ohsho, and Chun-Sun Cake. There are more than 600 stores globally in 4 continents, more than 20 countries and regions, and spreading to more than 80 cities.
The consolidated sales revenue of La Kaffa in the first 9 months of 2017 was 1.794 billion, increasing 17.48%, compared to the same period of previous year, which was mainly driven by global expansion of Chatime and growth of the dining business. The operating profit was 175 million, increasing 25.59% YoY, net profit after tax 117 million, 20.68% YoY, with EPS NT$3.6.

The effect of expansion stores stimulated revenue of La Kaffa in the fourth quarter of 2017, which was 703 million, and the accumulated revenue of last year hit 2.498 billion, increasing 19.25%, both hitting record highs. The institution’s investors mentioned that the La Kaffa EPS of last year is expected to be more than NT$5, which is better than the previous year’s performance.

Looking forward, in addition to Chatime continuing global expansion, it is expected to increase by 200-300 new opened stores this year. The market focuses on Europe and Central and South America. The investment of Re Light, which owns handmade beverage brands of “Heilongtang” and “GOMAX”, is expected to emerge gradually. In addition, the major revenue of La Kaffa in dining business for the past few years, including the Osaka Ohsho and beef noodles, will be aggressive in expanding stores. The launch two or three dining brands is expected this year, either building our own brands or dealerships. And we will launch dining business IPO plans. It is planned to be listed on TPEx Emerging Stock Board in middle of the year. Overall, La Kaffa consolidated revenue will be continued to grow in double-digits this year.

In order to attract talent, expand working capital, and increase brand visibility, La Kaffa will actively promote the IPO of its subsidiaries this year. In addition to its 91%-owned investment company, KINGZA International will be listed in Taiwan. The Australian subsidiary Infinite Plus Pty. Ltd, which 55% owned by La Kaffa, mainly owning more than 100 Chatime stores, is also planning a local IPO this year.

The capital of KINGZA International is about 300 million and its revenue in 2016 reached 212 million. Last year, the revenue of Duan Chun Zhen beef noodle were consolidated into the company, and with the benefit of the store expansion last year, the annual revenue was 800 million. Since there are store expansion of Duan Chun Zhen beef noodle, Wagokoro Tonkatsu Anzu Ginza, and Osaka Ohsho, the revenue is expected to grow significantly this year.

MoneyDJ news 2018-01-24 12:04:59 reported by Chang, YiChung

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