A year ago, I wrote an article that summarised my studies on Oriental Kopi’s IPO Prospectus.
To recap, in 2024, Oriental Kopi had 20 outlets, earned RM43.1 million, and was intending to get RM184.0 million in gross proceeds from issuing IPO shares at 44 sen each. With these funds, its leaders would pursue outlet expansions and grow its packaged food business. Also, it would set up a new head office, central kitchen and warehouse to support its expansion plans.
So, how has Oriental Kopi done since its listing on 23 January 2025?
Here, I’ll summarise its key developments up to date (26 February 2026). They are as follows:
1. Cafe Chain Operations: 28 Outlets in FY 2025
Oriental Kopi had added 8 outlets, thus, lifting its store count to 28 by 30 September 2025. The continuous expansion led to a 60.4% sales growth for its cafe operations, raising from RM260.4 million in FY 2024 to RM418.6 million in FY 2025.
2. Packaged Foods: 36 SKUs in FY 2025
Oriental Kopi expanded its portfolio of packaged foods from 26 SKUs in FY 2024 to 36 SKUs by FY 2025. The new offerings include:
Overall, Oriental Kopi had experienced greater sales volume for existing and new retail offerings across key platforms such as retail, wholesale and online channels. Thus, segment revenues had increased by 153.0% from RM11.5 million in FY 2024 to RM29.1 million in FY 2025.
3. Annual Financial Results: FY 2021 to FY 2025
Fuelled by continuous expansion, Oriental Kopi had reported higher revenues, gross profits, and shareholders’ earnings in FY 2025. Still, its gross margin had dipped marginally as it experienced a rise in material costs namely santan and coffee bean prices and higher labour costs, which are incurred in relation to the pre-opening of its new cafes. Its cash conversions are above 100% as Oriental Kopi generates cash sales mostly from its cafe chain operations.
4. Quarter Financial Results: Q1 2025 to Q1 2026
On a quarterly basis, Oriental Kopi achieved higher revenues and earnings. Earnings grew a little slower as its net margins had contracted marginally due to pre-opening expenses of new cafes. Cash conversions remain above 100% except for Q1 2026 as it has settled trade payables in the period.
5. Current Balance Sheet: Q1 2026
In Q1 2026, Oriental Kopi had reported RM295.4 million in current assets, comprising mainly the company’s cash balance and other investments (money market funds) totalling RM250.9 million (84.9% of current assets). It had reported RM49.6 million in current liabilities. Hence, its current ratio stood at 5.96. This ample of liquidity was contributed by operating cash flows and also the funds unutilised from its IPO listing.
Oriental Kopi had reported RM3.3 million in total borrowings, relatively insignificant if this figure is compared to its current assets.
6. 2026 Expansion Plans
Oriental Kopi had revealed its plan to open 13 new cafes in FY 2026. In addition, it had stated its discussions with potential partners to further expand to Indonesia, Thailand and the Philippines, which are currently still in the preliminary stages.
7. Purchase of Land and a Factory Lot in Puchong
Oriental Kopi entered into an agreement to purchase 5,262 sqm of leasehold land together with one unit of factory lot erected thereon in Taman Perindustrian Putra, Puchong for RM23 million.
Oriental Kopi currently occupies the property as its tenant. After its landlord (Vendor) indicated its intention to dispose of the property, Oriental Kopi decided to acquire it to reduce disruption of its current operations and to support ongoing growth of its operations.
8. Valuation
On 26 February 2026, Oriental Kopi was trading at RM1.26 a share.
Based on its recent 12-month earnings of RM64.7 million or Earnings per Share (EPS) of 3.2 sen, its latest P/E Ratio is 38.95. Based on its latest dividends per share (DPS) of 1.0 sen, its dividend yield is 0.79%.
Conclusion
All in all, Oriental Kopi had an eventful year in FY 2025. Its efforts in expanding its business have yielded an increase in revenues, earnings and operating cash flows since its listing. Also, with an ample amount of liquidity, Oriental Kopi set its sights to expand both locally and regionally.
Ultimately, the key to its continuous success lies in its ability to maintain high quality of its food and services and its execution speed and capability to further expand its businesses. As always, investors should conduct their own due diligence, weigh in the pros and cons and assess if the stock is a suitable fit to one’s individual portfolio before investing.
