ASEAN (Indo) & China-focused. Ex-Deputy HoR UBS.

Johannes Salim, CFA

Equity Bottom-Up

<ul><li>Our conference call with the IR of <a href="https://www.smartkarma.com/entities/18331" target="_blank" data-smartkarma-citation="entities:18331:1">Oldtown Bhd (OTB MK)</a> reveals that beverages manufacturing (primarily white coffee products) has driven decent top-line growth.</li><li>Its cafe operation, having gone through a rough patch, could be in its (nascent) recovery stage.</li><li>Strong free cash flow generation, coupled with high ROIC (30% in 1QFY18), is certainly a strong attraction.</li><li>OTB trades at 15.0x FY19 (ended in Mar), which is inexpensive for a consumer stock.</li></ul>

Our conference call with the IR of Oldtown Bhd (OTB MK) reveals that beverages manufacturing (primarily white coffee products) has driven decent top-line growth.Its cafe operation, having gone through a rough patch, could be in its (nascent) recovery stage.Strong free cash flow generation, coupled with high ROIC (30% in 1QFY18), is certainly a strong attraction.OTB trades at 15.0x FY19 (ended in Mar), which is inexpensive for a consumer stock.

OldTown Berhad: "I Would Like to Order White Coffee, Not Black Coffee, Please."