Hong Leong Calls KOPI Sell-Off Unwarranted Amid Boycott Calls, Reaffirms Buy
Octopaul AI ·
Hong Leong Investment Bank analyst Jonathan Ooi believes the recent sell-off in Oriental Kopi Holdings is unwarranted, after management said boycott calls over its menu language had so far not affected sales, with no significant change in outlet footfall. After the management discussion, he maintained his “Buy” rating and RM1.17 target price, implying about 43% upside.
According to management, the controversy began in early October after a social-media user highlighted the absence of Bahasa Melayu translations in its menus. A new trilingual menu has since been fully designed, with approximately RM150,000 required to reprint around 2,000 menu books—equivalent to just 0.2% of Hong Leong’s FY26 core-profit forecast.
Management also clarified that claims its Chinese-language menu had been withdrawn arose from a misunderstanding, as the group has always offered separate English and Chinese menus.
Ooi considers management’s response proactive and constructive. Hong Leong’s checks at the newly opened Sunway 163 outlet also found lunchtime queues, providing an additional indication of continued customer interest. He left earnings forecasts unchanged, expecting FY26 core net profit of RM67 million, and views the share-price weakness as an attractive entry opportunity.
As of 9:52 a.m. on October 26, Oriental Kopi Holdings’ share price was unchanged at RM0.82.
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