Shares & Derivatives
Kimly Group – Coffee shops operator
By SmallCapAsia  •  June 17, 2022
Excerpts from CGS CIMB report
  • 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.
Kimly 1HFY22 helped by Tenderfresh contribution and easing restrictions Kimly reported 1HFY9/22 net profit of S$19m (+6% hoh, -15% yoy), in line with our  expectation at 51% of our full-year forecast but slightly below consensus’ at 48% of Bloomberg consensus FY22F. Revenue rose to S$157m (+35% hoh, +28% yoy) due to higher-than-expected contribution (S$37.4m) from newly-acquired Tenderfresh (consolidated since 1 Oct 2021). However, this was offset by higher cost pressure which negatively impacted margins. An interim dividend of 0.56 scts (flat yoy) was proposed....
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By SmallCapAsia
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