HLIB Research said it is optimistic about Oriental Kopi’s strategic initiatives.
PETALING JAYA: Oriental Kopi Holdings Bhd
’s growth trajectory remains promising, underpinned by its strong brand presence, ongoing outlet expansion and increasing consumer demand, say analysts.
This is following the group’s commendable results for the second quarter of financial year 2025 (2Q25), which met most consensus expectations.
Hong Leong Investment Bank (HLIB) Research, in a report, said it is optimistic about Oriental Kopi’s strategic initiatives, including a new head office, central kitchen and warehouse, domestic expansion, as well as overseas market entry.
Furthermore, a key development is the planned three-storey operational facility in Selangor, that is set to streamline food preparation and enhance research and development, with completion targeted for the 4Q26.
The group is also diversifying its product offerings, with upcoming launches of new menu items and packaged goods, aimed at expanding its customer base and deepening engagement, the research house noted.
In parallel, Oriental Kopi is engaging overseas distributors to introduce its brand beyond Malaysia.
Its disciplined, location focused expansion strategy, prioritising high traffic sites, continues to differentiate it from peers and reinforces its commitment to quality, positioning the group for sustained long-term growth.
HLIB Research has maintained a “hold” call on the stock with a higher target price at RM1.13 per share.
“This reflects Oriental Kopi’s scarcity premium in Malaysia’s food and beverage (F&B) space, early-stage growth profile with a long expansion runway, and catalysts from its syariah-compliant status,” it added.
The premium is further supported by its superior revenue and earnings compounded annual growth rate relative to peers, justifying a valuation in line with high-growth regional café chains.
Meanwhile, MBSB Research said it remained positive on Oriental Kopi’s growth trajectory, anchored by its steady pace of cafe rollouts and the rising contribution from its higher-margin fast-moving consumer goods (FMCG) segment.
The group’s ongoing expansion of outlets across key urban centres would allow it to capture both resilient domestic demand and recovering tourist footfall, the research house said in a note to clients yesterday.
The group is also expanding its packaged food range with seasonal items such as moon cakes and exploring overseas distribution opportunities.
“These initiatives, together with supportive consumption trends, are expected to underpin sustained growth in both revenue and profitability,” it noted.
MBSB Research also said the group’s latest 2Q25 results have met expectations, underpinned by resilient cafe contributions and stronger FMCG traction.
With results tracking expectations, the research house has kept Oriental Kopi’s FY25 to FY27 earnings per share forecasts unchanged, while reiterating a “neutral” call on the stock.
MBSB Research has lifted the target price to RM1.03 from 83 sen previously.
“We believe the valuation premium is justified by the group’s strong growth prospects, supported by its fast-expanding cafe network, increasing FMCG contribution, recovering tourist footfall, and packaged food export opportunities,” it noted.
