La Kaffa Rich in Material, Promising Profit Outlook

Mergers and acquisitions, expansion, and reduced exchange losses have La Kaffa (2732)’s Profit Outlook seeming very promising. With the listing of subsidiaries in the Australian and Taiwanese stock market, La Kaffa is rich in material.

La Kaffa canceled their contract with a Malaysian agency in Q1 of last year due to missing materials and the number of overseas stores decreased by 165 due to reorganization, resulting in a low base period for operation. However, the new agencies have been active and 40 stores have been restored by the end of last year. With a projection of 100 restored stores, La Kaffa looks to regain composure in the ASEAN market.

La Kaffa officially acquired Re Light Management Co., Ltd. this year, indirectly holding 60% of shares and gaining operational dominance. Re Light operates brands in China such as Heilongtang and GoMax have 1,100 stores, 15% of which are regular chains.

A juridical person estimated that Re Light will focus on expansion in the Central, Eastern China this year and have 1,600 stores.

Newly listed during Q2 of this year, Kingza International currently has around 40 stores with subsidiaries including Wagokoro Tonkatsu Anzu Ginza, Duan Chun Zhen beef noodles, Osaka Ohsho, and Tan Yu. This year, the number of stores is expected to increase to 64.

As Kingza prepares for offering, 5,000 shares were lost last year in November with the shareholding percentage dropping from 91% to 74%. After being listed in Q2, the percentage will drop to 71%.

Australian subsidiary Infinite Plus Pty. Ltd, currently accounts for 22% of the group’s current revenues and La Kaffa currently has 55% of the shares. The plan is to be listed on the Australian Stock Exchange (ASX) this year. A juridical person estimates that it may offer 15% to 20% and La Kaffa will own less than 50% of the shares.

This juridical person believes that although revenue cannot be included in the primary merger, it is expected to have a one-time offering profit.

Huang Guan-Yin, Reporting from Taipei / January 29th, 2018 00:01 News Link：https://money.udn.com/money/story/11074/2954906