Cafe de Coral has weathered financial storms from the Asian financial crisis to the present economic downturn. Now the fast-food giant aims to strengthen further its solid position

THE PAST THREE years have been tough for most Hong Kong companies, big or small, stretching from the post-Asian crisis recession to the present economic downturn. However, Cafe de Coral Holdings has maintained double-digit profit growth throughout it all.

Often seen as a safe-haven stock in difficult economic times, the fast-food chain has not disappointed its shareholders. It reported a 15.29 per cent rise in net profit to HK$254.27 million in its last financial year, having grown at more than 20 per cent in 1999 and last year.

Cafe de Coral stock has risen 61.34 per cent over the past year, from HK$2.82 on October 19 last year to HK$4.55 at yesterday's close, handsomely outperforming the blue-chip Hang Seng Index along the way.

The company remains confident it can continue to sustain its business growth in the present financial year to March 31 amid the latest economic slump.

Last week, Cafe de Coral's impressive performance was recognised when business magazine Forbes Global chose the chain as one of the World's 200 Best Small Companies - the fourth consecutive year it has been listed. Cafe de Coral and seven other Hong Kong companies were honoured in the latest awards. The others are Giordano International, Global Sources, Hung Hing Printing, Kingboard Chemical Holdings, Kingmaker Footwear, Travelsky Technology and Arts Optical International Holdings.

They were selected from among more than 20,000 publicly listed companies: Forbes defines small firms as those with less than US$500 million in sales in the most recent financial reporting period. Those chosen pass rigorous screens for profitability, earnings and sales growth.

Cafe de Coral chairman Michael Chan Yue-kwong said the Forbes Global award was a great encouragement to the fast-food company.