Singapore, Oct 5 - Singapore-listed bakery China Angel Food is in talks to acquire other bakeries in China and sees higher earnings on the back of strong mooncake sales, its chairman told Reuters on Friday.
The firm said the acquisition of other bakeries would allow it to expand its production and retail facilities, increasing profitability in the long run.
"The acquisitions are part of our five-year plan. We will be able to expand out of the southeast of China," China Angel chairman Patrick Liang said in an interview in Singapore.
He declined to say when the acquisitions would be completed but said the company was in talks with "5 to 6 companies".
China Angel, which has a market cap of $140 million, has 23 cake shops as well as over 3,000 points of sales in China. "We are very confident that we will beat the revenue growth figure set in the third quarter of the fiscal year 2006," said Liang.
The company also sees increased revenue growth and net profit for 2007 from the previous year.
China Angel, which was listed in July, said in its prospectus that the firm had revenue of 106 million yuan in 2006, from 79 million yuan in 2005 and 33 million yuan in 2004. Over the same period, profit soared from just 5.5 million in 2004 to 20 million in 2005 and 38 million yuan ($5.06 million) in 2006.