STOCKS | Cafe de Coral Targets Rebuilding HK$10 Billion Market Cap, CEO Says

Cafe de Coral Holdings (0341) Chairman Lo Kai-kwong said at its full-year results briefing that the group aims to move toward a vision of reshaping itself into a HK$10 billion market-cap company. According to Ming Pao, CEO Leung Ho-ting said the company’s market value reached HK$6 billion to HK$7 billion in 2019, but it has since faced macro headwinds and still sees major challenges in the first half of the fiscal year. Leung said the group is executing cost-saving and revenue-enhancing measures, including operational optimization and deeper focus on core products, while also seeking growth in casual dining. She added that in mainland China the group has opened 195 stores and remains profitable, and said investors could re-rate the stock with a reasonable price-to-sales ratio if profit returns to pre-2019 levels.