WHILE MBSB Research maintains their positive outlook on Oriental Kopi (KOPI), its share price has surged recently. “We believe near term upside is capped despite solid fundamentals and therefore maintain a SELL call,” said MBSB.
KOPI chalked in quarter four financial year 2025 (4QFY25) revenue of RM133.2 mil and core profit after tax and minority interest (PATAMI) of RM15.9 mil.
This lifted FY25 core earnings to RM62.1 mil. An interim single-tier dividend of 1 sen per ordinary share in respect of the financial year ending 30 September 2025 was announced.
Oriental Kopi delivered another resilient quarter, with 4QFY25 revenue rising +14.1% quarter-on-quarter (qoq) to RM133.2 mil, driven predominantly by its café operations, which contributed RM122.6 mil.
The café segment benefitted from stronger footfall, supported by seasonal demand from the Mid-Autumn Festival, tourism-led traffic, and incremental contributions from newly opened outlets.
Meanwhile, the fast moving consumer goods (FMCG) segment continued to build momentum, increasing +12.0% qoq to RM9.2 mil, aided by expanding retail penetration and cross-selling across the café network.
Core PATAMI softened to RM15.9 mil in 4QFY25, falling as the quarter saw an elevated effective tax rate of 35% due to non-deductible pre-commencement and start-up expenses related to newly opened outlets.
Operationally, underlying profitability remained healthy, as profit before tax still grew +3.9% qoq in line with stronger revenue and café footfall, but the higher tax burden compressed core net margin to 11.9%.
For the full year, FY25 core PATAMI totalled RM62.1 mil, reflecting a robust 13.8% net margin and underscoring resilient earnings delivery despite the temporary tax-related drag in 4Q.
KOPI’s growth prospects remain supported by its ongoing café expansion and the continued contribution from its FMCG segment.
The rollout of new outlets across key urban centres should allow the group to tap into domestic demand and recovering tourist footfall, while its packaged food portfolio, including seasonal items such as mooncakes, and early-stage overseas distribution efforts, provide additional growth avenues expected to support revenue momentum. —Nov 26, 2025
Main image: Oriental Kopi
