OldTown… dated April 2012

Institutional shareholding in the stock has increased lately which supports the conviction on the company's bright prospects.

Its key drivers are going strong. The main drivers are the strong double-digit growth rate in the fast-moving consumer goods (FMCG) segment coupled with a moderate growth in the company's caf chains. The FMCG growth expects to be boosted by the continuation of likely rising market shares in Malaysia , Hong Kong and Singapore this year.

It will also be boosted by penetration into new markets such as South Korea and Vietnam . Meanwhile, the management's vision of opening more caf outlets domestically and regionally should be more than adequate to sustain the moderate growth rate in the segment that are conservatively forecasting for now (April 2012).

If the economic condition normalises with China continuing its growth trajectory, there could be more upsides to FY13.

Foreign and local funds have started to increase their stakes in the stock recently at 18.6% as at Feb 23, 2012.

The promoters (management and major shareholders) will no longer sell their shares in the open market. This could be a positive indication of the company's future earnings growth.