KIMLY $ Kimly: 1D0 0% may see upside to its earnings upon benefiting from a higher-than-expected number of acquisitions, according to DBS Group Research.
The brokerage has started coverage on the coffee shop and food court operator with a "buy" call and target price of S$0.50, which is pegged to a 15 times FY2022 price-to-earnings ratio, which is the stock's 5-year average.
In an initiation report on Thursday (Nov 18), analyst Paul Yong said he sees Kimly as "an attractive buy" due to its undemanding valuations and decent FY2022 yield estimate of 4.7 per cent.
ADD, TP S$0.56, S$0.41 close
Kimly’s FY9/21 net profit beat our
expectations by 8% due to stronger gross
margins. The group issued a special
dividend of 0.6 Scts, with a total DPS of 2
Scts translating to a solid dividend yield of
c.5%. Tenderfresh consolidation should
be seen from 1HFY22 onwards.
No, i am not concerned. I see him as a clever, decisive business person.
I see him as one with a good business acumen who make quick decisions.
The facts remain that he is able to lead the company to become a leading food related company, w a turnover of over S$200 mil and a profit of almost S$40 mil. Company is net cash w cash horde of $90 + mil. Company is also generous w dividends giving consistent yield of 4+% year after year.
Anyway he owns over 40% of the highly profitable company's share. There isn't a need for him to indulge in "dodgy" business. The "dodgy" side, in my view was probably an oversight