Jumbo Group Limited - CGS-CIMB Research 2018-10-04: In Rapid Regional Expansion Mode

JUMBO GROUP LIMITED (SGX:42R) | SGinvestors.io JUMBO GROUP LIMITED SGX:42R

Jumbo Group Limited - In Rapid Regional Expansion Mode

  • JUMBO is rapidly expanding into new cities in Asia and plans to open more JUMBO Seafood franchise outlets over the next four years.
  • Operating cost per sq ft of restaurant space was down 16.5% q-o-q in 3QFY18 due to cost optimisation efforts, which could lead to margin uplift in future.
  • We think JUMBO’s net profit will trough in FY18F, before strong recovery in FY19F. Maintain ADD with lower Target Price of S$0.58 after adjusting cost estimates.



Number of franchise outlets to quintuple by end-FY18F

  • JUMBO added three new JUMBO Seafood franchise outlets in Taipei, Taichung and Fuzhou in FY9/18F and plans to open one new franchise outlet in in Bangkok by end- 2018F. We estimate its franchise outlet count will rise to five by end-FY18F, including one Bak Kut Teh franchise outlet that was opened in Taipei in Jul 2018.
  • JUMBO plans to add 5-6 franchise outlets each year and ......





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Renowned chilli crab restaurant chain in Singapore still growing

  • JUMBO Seafood outlets in Singapore continue to capitalise on their signature chilli crab dish, evidenced by .....
  • Other F&B brands under the JUMBO group also showed improvement in sales per ......






Colin TAN CGS-CIMB Research | Cezzane SEE CGS-CIMB Research | https://research.itradecimb.com/ 2018-10-04
SGX Stock Analyst Report ADD Maintain ADD 0.58 Down 0.620



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