Excerpts from CGS CIMB report Jumbo Group (SGX: 42R)

• Jumbo Group 1HFY9/22 net loss of S$4.5m was below our expectations due to Omicron impacts. Significant easing of Covid measures in Singapore will aid recovery.
• However, key overhang is strict Covid-19 restrictions in China (7 outlets). We now expect Jumbo to remain loss-making in FY22F (S$5m net loss).

Reiterate Hold with lower TP of S$0.30, still based on 20.5x CY23F P/E. Jumbo Group 1HFY22: higher revenue but slightly wider operating loss Jumbo’s net loss widened to S$4.5m in 1HFY9/22 (1HFY21 loss: S$4.3m), below expectations due to slow recovery in Singapore with the emergence of the Covid-19 Omicron variant. Excluding government grants, 1HFY22 EBIT loss would be S$4.2m, narrower yoy (1HFY21: S$5.1m). Revenue from Singapore recovered to S$30m (+68% hoh, +14% yoy), mainly supported by Jumbo’s diversification into the mass market (Kok Kee Wonton Noodle) as well as new brand initiatives (JUMBO Signatures, Slake and Hack it), which offset negative impacts from...