Kawan Food Bhd (XKLS:7216) Operating Income: RM11.1 Mil (TTM As of Mar. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

XKLS:7216 Kawan Food Bhd XKLS:7216
64 GF Score
Price RM0.82
GF Value RM1.34
Valuation Significantly Undervalued
! 5 Warning Signs
View Full Analysis

What is Kawan Food Bhd Operating Income?

Kawan Food Bhd XKLS:7216 +2.52% 64 Operating Income is RM11.1 Mil as of Mar. 2026. GuruFocus rates XKLS:7216 with a GF Score™ of 64/100 and a GF Value™ of RM1.34 (Significantly Undervalued). The stock has 5 warning signs investors should review.

Kawan Food Bhd's Operating Income for the three months ended in Mar. 2026 was RM2.2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was RM11.1 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Kawan Food Bhd's Operating Income for the three months ended in Mar. 2026 was RM2.2 Mil. Kawan Food Bhd's Revenue for the three months ended in Mar. 2026 was RM68.7 Mil. Therefore, Kawan Food Bhd's Operating Margin % for the quarter that ended in Mar. 2026 was 3.23%.

Warning Sign:

Kawan Food Bhd operating margin has been in a 5-year decline. The average rate of decline per year is -9%.

Kawan Food Bhd's 5-Year average Growth Rate for Operating Margin % was -9.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Kawan Food Bhd's annualized ROC % for the quarter that ended in Mar. 2026 was 1.96%. Kawan Food Bhd's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 2.51%.

Kawan Food Bhd  (XKLS:7216) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Kawan Food Bhd's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=8.88 * ( 1 - 34.06% )/( (300.758 + 296.778)/ 2 )
=5.855472/298.768
=1.96 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=438.306 - 31.331 - ( 106.217 - max(0, 46.032 - 238.015+106.217))
=300.758

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=432.438 - 41.129 - ( 94.531 - max(0, 41.136 - 236.563+94.531))
=296.778

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Kawan Food Bhd's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=7.04/( ( (189.616 + max(82.281, 0)) + (188.501 + max(100.903, 0)) )/ 2 )
=7.04/( ( 271.897 + 289.404 )/ 2 )
=7.04/280.6505
=2.51 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(78.428 + 39.22 + 10.658) - (31.331 + 0 + 14.694)
=82.281

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(95.714 + 36.084 + 10.234) - (41.129 + 0 + 7.105427357601E-15)
=100.903

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Kawan Food Bhd's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=2.22/68.678
=3.23 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Kawan Food Bhd Operating Income Related Terms

Kawan Food Bhd Operating Income Historical Data

* Premium members only.

The historical data trend for Kawan Food Bhd's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Kawan Food Bhd Operating Income Chart

Kawan Food Bhd Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.48 28.83 24.98 35.76 14.41

Kawan Food Bhd Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.75 5.59 2.17 1.09 2.22
XKLS:7216
64GF Score
Kawan Food Bhd XKLS:7216
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kawan Food Bhd Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was RM11.1 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of RM11.1 Mil mean?
Kawan Food Bhd (XKLS:7216) has a Operating Income of RM11.1 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Kawan Food Bhd and its competitors.
Is Kawan Food Bhd's Operating Income too high?
Kawan Food Bhd's current Operating Income is RM11.1 Mil. Overall, Kawan Food Bhd has a GF Score™ of 64/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kawan Food Bhd's Operating Income compare to KHC and GIS?
Kawan Food Bhd's Operating Income of RM11.1 Mil can be compared against companies in the Consumer Packaged Goods industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Consumer Packaged Goods company?
A good Operating Income depends on the Consumer Packaged Goods industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Kawan Food Bhd and its competitors. Kawan Food Bhd's current Operating Income is RM11.1 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kawan Food Bhd stock overvalued right now?
Based on GuruFocus' analysis, Kawan Food Bhd (XKLS:7216) is currently considered Significantly Undervalued. The stock's GF Value™ is RM1.34, compared to a current price of RM0.82 — trading 39.2% below its estimated fair value. The current Operating Income is RM11.1 Mil. Kawan Food Bhd's overall GF Score™ is 64/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Kawan Food Bhd (XKLS:7216), the current Operating Income is RM11.1 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Kawan Food Bhd (XKLS:7216) Overvalued in 2026?

Based on GuruFocus' analysis, Kawan Food Bhd stock appears to be undervalued. The current stock price of RM0.82 is trading 39.2% below its estimated GF Value™ of RM1.34. GuruFocus considers Kawan Food Bhd to be Significantly Undervalued.

Key valuation signals for XKLS:7216:

  • Operating Income: RM11.1 Mil
  • GF Value™: RM1.34 vs. price of RM0.82 (39.2% below fair value)
  • GF Score™: 64/100 with 5 warning signs

No single metric tells the full story. See the XKLS:7216 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Kawan Food Bhd Business Description

Address Lot 129351, Jalan Sungai Pinang 4/19, Taman Perindustrian Pulau Indah, Selangor Halal Hub, Fasa 2C, Pulau Indah, SGR, MYS, 42920
Kawan Food Bhd is engaged in manufacturing, sale, exporting, trading and distribution of frozen food products, investment property, investment holding activities, rental of trucks, beverage industry, specialises in manufacturing, trading, distributing, importing and exporting concentrated syrups of various flavors as well as frozen fruit juices and information technology. Geographically, the company derives its maximum revenue from Malaysia, North America, Rest of Asia, Europe, Oceania, and Africa. The manufacturing of frozen food products is carried out only in Malaysia.
64GF Score

Get the complete analysis for XKLS:7216

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

RM0.82
Price
RM1.34
GF Value