In today’s briefing:
- Old Chang Kee: A Snack Food Powerhouse
- Stricter Voting Guideline by Domestic Investors Will Push Managers to Return to Basics of Management
Old Chang Kee: A Snack Food Powerhouse
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Corporate Monitor Limited (CML) is initiating its research on Old Chang Kee (“OCK”), which sells an assortment of snack foods including curry puffs, seafood favourites, and chicken delights.
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The curry puff specialist has steadily grown its annual revenue past the S$100 million mark, while net profit also grew in tandem to close to S$10 million level for fiscal 2026 (FY2026).
- OCK achieved this despite seeing its total number of Singapore outlets stabilise at 82, suggesting that the Company was increasing its sales per outlet.
Stricter Voting Guideline by Domestic Investors Will Push Managers to Return to Basics of Management
- From the perspective of voting criteria used by institutional investors, the 8% threshold for three-year average ROE still seems to be slightly too high as a hurdle for smaller-cap companies.
- Rather than being hindered in improving ROE by policy-held shares, the more serious problem is the risk that management won’t act in the best interests of shareholders, shielded by cross-shareholdings.
- It’s not “TSE’s request” or Corporate Governance Code that will prompt management to change their ways and begin taking these issues seriously; only proxy voting can change management’s mindset.
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