Highlights

Singapore Stock Market News

Author: StockFanatic   |   Latest post: Mon, 21 May 2018, 12:34 PM

 

Jumbo Group Ltd - Expansion cost pain for long-term gain

Author:   |    Publish date:   |  >> Read article in Blog website


Core earnings missed; Cut FY18-20E EPS and TP
Core earnings during 6M18 missed our and consensus estimates by 10- 12%. 2Q18 earnings fell 27% YoY, mainly due to marketing and expansion costs, including higher-than-expected staff costs and other operating expenses at its HQ office in China. On the bright side, 2Q18 revenue continued to grow by 6% YoY from two new outlets in China. We cut our FY18-20E EPS by 20-24% in anticipation of higher staff costs for further expansion. Accordingly, our DCF-based TP fell 7% to SGD0.65 (WACC 9%, LTG 2%), implying multiples of 33x/26x FY18/19E EPS. Despite the earnings weakness, we continue to like Jumbo's established brand and scalable business model.
Share this
Labels: Jumbo

Related Stocks

Chart Stock Name Last Change Volume 
Jumbo 0.535 -0.01 (1.83%) 112,000 

  Be the first to like this.
 


 

127  187  235  519 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 Ezion 0.126+0.005 
 Magnus Energy 0.0010.00 
 NetLink NBN Tr 0.79-0.01 
 Jiutian Chemical 0.0540.00 
 UMS 0.90-0.075 
 KrisEnergy 0.104+0.001 
 Moya Asia 0.09-0.005 
 Jasper Inv 0.01+0.003 
 Genting Sing 1.31+0.01 
 YZJ Shipbldg SGD 1.05+0.02 
Partners & Brokers