How much is 'dumpling boss' Tho Phat valued at?

Kido Group (Code: KDC) has just announced its separate financial report for the third quarter of 2023, revealing the value of its investment in Tho Phat International Joint Stock Company, a 40-year-old dumpling brand with the largest market share in the South.

The total amount of money that Kido invested was more than 810 billion VND to hold 51% of shares at the end of September, thereby making Tho Phat the 7th subsidiary to join this ecosystem. With this data, the "dumpling tycoon" is currently valued at nearly 1,600 billion VND.

Not stopping there, Kido recently announced to increase its ownership ratio in Tho Phat to 68% of charter capital in October to become an important piece in the strategy to expand the bakery industry. With this new ratio, the amount of money this group has invested is more than 1,000 billion VND.

This value makes Tho Phat the third largest company in Kido's ecosystem, after Vocarimex and Tuong An, two key enterprises in the vegetable oil industry.

	Investment capital	Ownership ratio (%)
Vocarimex	2,658	87.29
Tuong An Oil	1,176	72.24
Tho Phat	810	51
Kido Nha Be	41	51
KidoFood	30	100
Kido Trading and Service	9	100
Kido Long An	0.1	100

Tho Phat was established in 1987 and is currently the largest dumpling brand in the South with more than 4,000 points of sale. The company specializes in manufacturing and distributing dumplings, rice cakes, sticky rice, baked cakes, fried cakes, etc. The company owns a factory in Ho Chi Minh City with an area of over 22,000 m2 and a capacity of 10,000 tons of products/year.

The dumpling company aims to develop 1,000 agents, 1,200 Bao mini stores, 100,000 retail points and 100% coverage of MT stores (modern stores) nationwide.

Meanwhile, Kido is a leading corporation in the food industry. The company leads the market in the ice cream industry with a market share of 44.5% and the margarine industry with 74.9%, and ranks second in the cooking oil industry with about 30% market share.

In 2021, this unit also officially returned to the bakery industry with the KIDO's Bakery brand after 5 years of selling the confectionery segment to Mondelez International. After Tho Phat, this giant said it would continue to seek M&A deals with the goal of returning to the top of the confectionery industry by 2025.

According to the consolidated report for the third quarter, Kido recorded a decrease of nearly 29% in consolidated revenue to VND2,356 billion. However, thanks to strong cost reductions, the company still had a period of high profit growth with VND82 billion, 2.7 times the same period result.

Adding to the positive results in the first half of the year thanks to the partial divestment of KidoFoods, this multi-industry group announced that it achieved VND647 billion in after-tax profit in the first 9 months of 2023, an increase of 75% over the same period last year and close to the annual plan.

Kido continued to maintain a stable cash flow with cash and cash equivalents at the end of the third quarter reaching VND2,058 billion, nearly double that of the beginning of the year. The Group had investments held to maturity of VND764 billion (mainly including VND480 billion of Dragon Viet Securities bonds and bank deposits). The company also advanced VND1,393 billion to Asia Investment LLC to purchase target shares.

Having just made a huge profit in the first half of the year, Kido continues to increase mooncake production . In the 2023 Mid-Autumn Festival, Kido Group increased KIDO's Bakery mooncake production by 60% over the same period, exceeding 10% of the original plan.

Source