Excerpts from CGSCIMB report We expect a significant return to profitability in FY9/23F on the back of rampup in Singapore outlet footfall and relaxation of China Covid-19 measures. China outlets appear set for a steady recovery due to 1) easing domestic pandemic restrictions, and 2) ramp-up in Universal Beijing Resort outlet. Jumbo Group is set for a year of earnings rebound in FY23F Upgrade to Add at a higher TP of S$0.35, based on 20x CY24F P/E.

Jumbo Group FY23F should be a much stronger year

Following Jumbo Group’s return to profitability in 2HFY22 (net profit of S$4.4m), we expect FY9/23F net profit to record a significant rebound to S$8.6m (vs. FY22: S$0.1m net loss). Key positives from 2H22 financials include a strong rebound in Singapore revenue as outlet footfall gained traction, and an exceptionally strong GPM of 66.3% (vs. 2H21:61.9%). FY22 revenue from China fell 12% yoy to...