Simons Trading Research
BreadTalk Group Ltd - Time to Lock in Gains
- BreadTalk’s 2Q18 earnings below on higher operating costs and interest expense.
- Interim DPS of 0.5 Sct declared.
- Cut FY18-19F earnings by 8-15%.
- Downgrade to HOLD, Target Price S$1.07.
Downgrade to HOLD, Target Price at S$1.07.
We turn neutral on BreadTalk on lower earnings outlook, led largely by higher interest costs.
Since our last report in May 2018 (see report: BreadTalk Group Ltd - Margin Expansion To Drive Growth | SGinvestors.io), the stock has rallied by > 20%. Valuations are now 30.9x FY19F PE at around +1SD of its past four years’ mean PE valuation.
While earnings are now lower, growth continues to be led by better operating leverage from closure of less profitable outlets in the past quarters. However, we are less positive and have lowered net earnings by 8-15% after accounting for higher interest costs going forward.
Source: DBS Research - 06 Aug 2018
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
Market Buzz
More articles on Simons Trading Research
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
Latest Videos
Apps
Top Articles
1
THE SINGAPOREAN INVESTOR
Frasers Centrepoint Trust's Annual Report for FY2023/24 - Key Highlights to Take Note of
2
CEO Morning Brief
3
CEO Morning Brief
4
Collin Seow Remisier Blog
5
RHB Investment Research Reports
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
