Oriental Kopi Holdings Berhad (KLSE: KOPI) has quickly captured the spotlight on Bursa Malaysia, emerging as one of the most exciting consumer counters in 2025. With its strong café chain business, innovative product offerings, and clear roadmap for expansion, Oriental Kopi is shaping up as a growth story worth watching.
Q3 FY2025 Results – A Strong Brew of Growth
For the third quarter of FY2025, Oriental Kopi reported revenue of RM116.7 million, driven primarily by its café chain operations, which contributed more than 92% of topline earnings.
The Group’s consistent performance reflects not only robust consumer demand but also strong execution by management in scaling its brand presence across Malaysia.
Strategic Use of IPO Proceeds
Post-listing, Oriental Kopi is deploying its IPO proceeds strategically to support sustainable growth:
- RM36.4 million allocated for new café rollouts.
- RM53.7 million for a new head office, central kitchen, and warehouse.
- Expansion of packaged food segment and international marketing initiatives.
This structured capital deployment gives Oriental Kopi visibility for at least the next 24–36 months of expansion without stretching its balance sheet.
Expansion Strategy – Domestic & International
- Domestic Growth: Oriental Kopi is steadily growing its footprint across more Malaysian states, tapping into rising demand for café culture.
- Overseas Ambition: Management has hinted at international expansion, using its brand strength and packaged food products to penetrate regional markets.
- Seasonal Innovation: The company continues to capture seasonal spending trends, such as mooncakes during the Mid-Autumn Festival, showing agility in product innovation.
Valuation and Investment View
At current price levels, Oriental Kopi (KLSE: KOPI) trades at an attractive forward valuation, considering its earnings growth trajectory and strong brand positioning.
We assign a BUY recommendation with a Target Price (TP) of RM1.30, pegged to a 25x forward multiple. This premium valuation is justified by:
- Strong brand equity in Malaysia’s consumer sector.
- Double-digit profit margins and consistent scalability.
- Clear roadmap for regional and international expansion.
Conclusion – A Stock Worth Watching on Bursa Malaysia
Oriental Kopi’s combination of robust fundamentals, strategic expansion, and brand strength makes it one of the standout consumer counters on Bursa Malaysia (KLSE). For investors seeking exposure to Malaysia’s growing consumer and lifestyle sector, KOPI offers a compelling story with both domestic and international growth catalysts.
With IPO proceeds fueling its next phase of expansion, Oriental Kopi looks well-positioned to deliver strong shareholder returns in the coming years.
👉 At My Bursa Watch, we continue to rate Oriental Kopi (KOPI) a BUY, with a Target Price of RM1.30.
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