Fair Value Maybank Investment Bank

Valuations
Fair value of RM1.50. At the listing price of RM1.25/share, the company would trade at a prospective 2012 PER of 9.3x while based on its payout policy of 50%, the stock would offer a dividend yield of 4.6%.

Among domestic and regional peers, OldTown enjoys the second highest margins and has demonstrated the best potential CAGR growth for the period 2009 to 2012. We would note however that OldTown cafes would be the youngest chain (started in 2005).

PER wise, OldTown trades at a 17% discount to the peer average of 11.2x. Considering its better dividend yield. we feel OldTown should trade in line with its peer average PER of 11.2x 2012 earnings. Our derived fair value for OldTown is RM1.50, which represents a 20% premium to its listing price.

Pembahagian Share

i) MITI investors (11.0%),

ii) private placement (13.7%)

iii) public (3%)

iv) employees (1.5%).