Kawan Food - facility capacity increase fivefold

The outlook for Kawan Food is expected to be positive as the frozen pastry food maker expands its manufacturing capacity in Malaysia.

At rm2.53 per share, it is trading at about 18 times PER for the financial year 2013 ended Dec 13.

The group’s business prospect is underpinned by its new manufacturing facility on Pulau Indah which is expected to come online by 3QFY2015. It will increase its production capacity fivefold.

It is spending rm100 million to relocate its manufacturing operations in Shah Alam which will improve efficiency.

The group had launched a new brand in the US to cater for different segment of the market. It also has a manufacturing facility in China to cater for the local market.

It also plans to penetrate some new ones like South America and Africa.