- We see tailwinds subsiding due to Singapore’s significantly-relaxed Covid-19 measures since Apr. Workers return to office could impact Kimly’s footfall.
- We also expect further margin compression in 2HFY9/22F arising from higher raw material and staff costs. We lower our FY22-24F EPS by 9-17%.
- Downgrade to Hold with a lower TP of S$0.41, now pegged to 15.4x CY23F P/E (vs. 16.8x previously), based on -0.5 s.d. from 5-year historical mean.
Excerpts from CGS CIMB report