Brokers' take

BreadTalk | Neutral (upgraded) Target price: S$0.81 Feb 21 close: S$0.87 RHB Research Institute, Feb 21

Q4 2018 results were above expectations, due to a write-back of the bonus provision in previous quarters for the bakery segment, lower-than-expected corporate costs and margin improvements in the food atrium segment.

The bakery segment continued to underperform, with losses incurred in China. This was mitigated by stronger earnings in Singapore and other franchise income. Meanwhile, the food atrium segment surprised us with wider margins, despite the already-low vacancy rates.