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4 Stocks This Week

4 Stocks This Week (Hawker Culture) [12 October 2018] Kimly; BreadTalk; Koufu; Katrina

Hawker culture has grabbed national headlines lately. Should Singapore investors be hungry for SGX-listed companies that are in the hawker center and food court business?

 

Ever since PM Lee’s proposal for Singapore’s hawker culture to be included in Unesco’s Representative List of the Intangible Cultural Heritage of Humanity, things have been eventful in Singapore’s hawker scene. In September, NTUC Enterprise announced that it will be acquiring Kopitiam by the end of the year, operating it alongside its own NTUC  Foodfare subsidiary.

Earlier this month, hawker champion and Makansutra founder KF Seetoh wrote an open letter to Senior Minister of State Dr Amy Khor about how landlords are “killing” local hawkers with fees and contract terms, some of which were allegedly predatory and not transparent.

In this week’s column of 4 Stocks This Week, we’ll take a look at four SGX-listed companies that operate coffeeshops, food courts and other food and beverage stalls.

Read Also: Thinking of Running Your Own F&B Stall Or Restaurant Business? Here Are The Costs You Need To Be Prepared For

Kimly Limited (SGX: 1D0)

With more than 27 years of experience, Kimly is the largest operator of traditional coffee shops, food courts, and food stalls Singapore.

The group operates 68 food courts,coffeeshops and industrial canteens under their Kimly, foodclique, and other brands, as well as 129 individual food stalls selling a variety of cuisine including mixed vegetable rice, “dim sum”, seafood “zi char” and live seafood. Kimly was listed on SGX Catalist on 20 March 2017.

Seeing increased appetite among consumers for online food delivery services, Kimly have been expanding their offerings for online food delivery since late 2016. Kimly opened a new central kitchen situated next to their corporate headquarters in September 2017 to better support their current and future operations.

For FY2017 ended 30 September 2017 , Kimly increased revenue by 12% to $192.1 million, from S$172.2 million in the preceding financial year.

Kimly closed at $0.30 this week, a 52-week low, giving it a market capitalisation of $352.33 million.

BreadTalk Group Limited (SGX: CTN)

The BreadTalk Group is a household brand that owns and operates a wide range of food and beverage businesses in Singapore, China, and around the world, including bakeries, food courts, restaurants. The company operates a whopping 871 bakeries, making it one of the largest bakeries in Singapore.

On 1 August 2018, BreadTalk announced consolidated financial results for 2Q2018 and 1H2018, ended 30 June 2018. For the quarter, revenue grew to $148.8 million, against $147.7 million for the same period a year ago, while net cash flow from operating activities was $16.26 million, against $31.85 million a year ago.

BreadTalk closed at $0.965, giving it a market cap of $543.56 million.

Read Also: 9 Steamboat And BBQ Restaurants You Shouldn’t Be Paying The Full Price For

Koufu Group Limited (SGX: VL6)

The Koufu Group manages and operates F&B establishments in Singapore and Macau, including 47 food courts, 86 food and beverage stalls and kiosks, 14 coffee shops, 1 hawker center, and 1 commercial mall. Brands owned and operated by Koufu include Koufu, Cookhouse, Happy Hawkers, Gourmet Paradise, and Rasapura (at Marina Bay Sands).

In their earnings results announcement for 2Q2018 and 1H2018 ended 30 June 2018, the group reported revenues of $54.147 million,  compared to $53.501 million a year ago. Profit for the period was $12.291 million compared to $12.532 a year ago.

Moving forward, Koufu is planning a new 20-000 square metre integrated facility, with a larger central kitchen, centralised dishwashing facility, training centre and R&D lab, to be ready in 2020.

Koufu closed at $0.62 this week, which is a 52-week low. It has a current market capitalisation of $344.2 million.

Katrina Group Ltd. (SGX: 1A0)

Katrina Group owns and operates restaurants and cafes under the Bali Thai, Streats, Honguo, So Pho, Muchos, Hutong, and other brands. It operates 39 of such restaurants in Singapore and 1 restaurant in China. The company also provides online food ordering and delivery services.

On 14 August 2018, the Katrina Group reported earnings for 1H2018 ended 30 June 2018. The company reported revenues of $30.755 million compared to $27.650 million a year ago. This increase in revenue was attributed to an increase in the number of outlets.

Katrina Group’s last done price was $0.21 this week.

Read Also: How Much SG Bonus Will I Be Getting In 2018, And 3 Other Things You Should Also Know

4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.

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