BreadTalk Group will go ex-dividend for its interim special dividend of S$0.0135/share on 16 Jun, and this would be payable on 3 Jul to shareholders. Recall that this special dividend totaling S$3.8m is a result of the group’s divestment of 112 Katong, a non-core real estate investment, and the amount represents 45% of the divestment gain of S$8.5m.

We note that the business results were largely helped by this gain, and while we saw better performance from Bakery and Restaurant, we still prefer to see the group in a more stable state. We currently have a SELL rating and fair value estimate of S$0.96 on the stock.

Source: OCBC Research - 13 Jun 2016