Excerpts from CGSCIMB report

Kimly Ltd (SGX: 1D0)

Kimly Ltd is divesting its confectionery business (Rive Gauche) to Muginoho Global for S$2.8m to streamline operations. The purchase consideration indicates an implied FY22F P/E multiple of c.12x, which we deem fair. We reiterate Hold with an unchanged TP of S$0.41 as we expect headwinds from footfall normalisation after Covid-19 highs and rising cost pressures.

Divesting confectionery business

On 9 Sep 22, Kimly entered into a business transfer agreement with Muginoho Global for the complete disposal of the group’s confectionery business, Rive Gauche Patisserie. Initially acquired by Kimly together with Tonkichi for S$1.82m in Jul 18, Rive Gauche is involved in the operation of French-inspired confectionery outlets. As of end-Mar 22, Kimly operated seven Rive Gauche outlets. The acquirer, Muginoho Global, is a wholly-owned subsidiary of Muginoho Holdings. Muginoho Holdings is headquartered in Japan and owns a portfolio of pastry...