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19

2024

Dec

Namchow’s “Little Golden Chick” Lucky Royal Delicious to be Listed on the Emerging Stock Market on the 26th.

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[Reporter Ko An-Tsung, Taipei] Royal Delicious (Ticker: 7791), a subsidiary of Namchow, was officially listed on the Emerging Stock Market on the 26th. Since July this year, when its parent company Namchow Holdings (Ticker: 1702) initiated IPO preparations by offering shares for priority subscription to existing shareholders, the company has attracted growing market attention and discussion. Royal Delicious, regarded as a "little golden chick" within the group, has demonstrated impressive performance: over the past three years, its ice cream business has achieved a compound annual growth rate (CAGR) exceeding 20.7%, significantly outpacing the overall growth of Taiwan’s ice cream market. Additionally, revenue from its frozen cooked noodle business grew by 10% year-on-year in the first half of 2024. As of October this year, Lucky Royal has reported unaudited cumulative revenue of NT$2.33 billion, and its unaudited after-tax net income has reached NT$349 million—already approaching its full-year profit for 2023. The company also posted earnings per share (EPS) of NT$4.99 for the first ten months of the year.

Founded in 1952, Namchow Holdings has upheld a philosophy of sustainable management for 72 years. With a commitment to integrity, adaptability, high-quality differentiated products, and innovative business models, the company is steadily progressing toward its goal of becoming a century-old enterprise. Lucky Royal continues the legacy of the Royal Delicious brand, adhering to the principles of “innovative business models, high value-added differentiated products, and safety.” These values have established its ice cream and frozen cooked noodle businesses as leading brands in their respective markets.

In 2012, Lucky Royal’s ice cream factory in Tainan became the first food manufacturer in Taiwan to implement a full product range under the “Certified Safe Food Traceability” system, applying comprehensive traceability management across all products. Even earlier, in 1998, the company invested hundreds of millions of NT dollars to collaborate with Japan’s leading frozen noodle technology company, Katokichi, pioneering the adoption of advanced automated frozen noodle production equipment in Taiwan. By leveraging high technology to transform a traditional industry, Lucky Royal has demonstrated precise insight into consumer trends.

Currently, ice cream products account for approximately 70% to 80% of Lucky Royal’s revenue, while frozen cooked noodles make up around 20% to 30%. Both product lines serve B2B and B2C markets. In addition to its own ice cream brand, Royal Delicious also provides ODM and OEM services for B2B clients, positioning itself as a pioneer in co-branded product development in the Taiwanese market. The company has even commissioned professional factories in Japan to produce ODM ice cream desserts for the Royal brand. In recent years, the rapid growth of the foodservice and ready-to-eat markets has brought new customers and opportunities to Lucky Royal’s frozen cooked noodle business. With over 25,000 restaurant clients across Taiwan, the company has established a solid foundation in this vast market. As the number of foodservice businesses continues to grow, the outlook remains highly promising. By combining its ice cream and noodle product lines, Lucky Royal holds a strategic advantage in offering both main and side dishes. This allows for one-stop promotion to B2B clients, significantly enhancing customer acquisition cost-efficiency. On the client side, the expanded product portfolio offers richer menu options that help increase per-customer sales. Additionally, the convenience and consistency of Royal’s products support restaurant operators in standardizing workflows and addressing labor shortages—ultimately achieving win-win outcomes with clients.

In the B2C market, Lucky Royal remains committed to a differentiation strategy to create product value. Its uniquely patented “Kuang Shih Chi Pai” ice cream bar, launched in 1991, has sold over 1.3 billion units in the past 33 years—enough to circle the Earth 5.67 times. The brand has also partnered with major sporting events, making appearances in the Chinese Professional Baseball League (CPBL), the WBSC Premier12 preliminaries and semifinals, and even the finals held at the Tokyo Dome. Other popular offerings under the Du Lao Yeh (Dr. Freeze) brand—such as cone ice cream, tub ice cream, and the beloved green mango popsicle—have also been highly praised by consumers and remain long-standing bestsellers.

In addition, product precision is a key factor for success. This year, Lucky Royal launched over 100 new ice cream products. In a highly competitive market, the company has keenly identified consumer demands and introduced uniquely differentiated items such as the Duroyal Golden Sand Salted Egg Yolk Ice Cream and the Blueberry Yogurt Ice Bar. These innovations not only sparked market buzz but also energized the brand. The Sanuki frozen cooked noodles offer the advantage of no defrosting required and can deliver freshly cooked texture with just 30 seconds of heating. The product range includes both Eastern and Western noodle varieties, combining great taste, speed, and convenience. With urban families increasingly seeking quick, safe, and healthy meal solutions, these products are well-positioned to tap into vast new market opportunities.

Lucky Royal maintains an optimistic outlook for future growth and is implementing a four-pronged strategy: “diversified product lines, deepened innovative business models, new equipment and technology, and expanded overseas market presence.” The company aims to diversify and strengthen its ice cream and frozen cooked noodle product lines, while broadening its market reach to target both younger and aging demographics. To meet increasing demand for varied ice cream offerings, both the southern Tainan plant and the northern Taoyuan plant are continuously upgrading and adding new production lines. By leveraging advanced equipment and technology, Lucky Royal is maximizing its ability to deliver diverse products and capitalize on innovative business strategies. Meanwhile, the company is also planning to add a third production line for its frozen cooked noodle operations, with production expected to begin as early as the third quarter of next year.

Lucky Royal , with its innovative business model in the Taiwanese market, strong brand power, and competitive edge, has maintained double-digit growth over the years. Its ice cream products are set to step onto the international stage, with plans to expand into large overseas markets. The frozen cooked noodles boast strong product capabilities and are targeting the growing convenience store food market. Additionally, the noodles hold Halal certification for Indonesia, and the company has already achieved double-digit export sales, successfully introducing its products to nine overseas markets. Royal Delicious is actively expanding its customer base, becoming a new growth driver that contributes to the overall operational performance. (Source: ZiLi Electronic News, November 25, 2024)

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