Brokers' take

Old Chang Kee | Buy Target price: S$0.98 Dec 5 close: S$0.755 Phillip Securities Research, Dec 5

We continue to view Old Chang Kee (OCK) as a defensive growth play with a 28 per cent capital upside to our target price of S$0.98 and a 4 per cent dividend yield.

The completion of its reconstruction work in 2 Woodlands Terrace in Q1 FY18 and integration with the adjacent new factory would be the inflection point for OCK. We expect better earnings by Q2 FY18 on the back of enhanced manufacturing efficiencies and introduction of new product offerings with better margins.