Brokers' take

Published Fri, Jun 28, 2019 · 09:50 PM
Share this article.

Koufu Group > Buy (upgraded) DBS Equity Research, June 27 June 28 close: S$0.69 Target price: S$0.85

WE turn positive on Koufu Group, upgrading our recommendation and increasing our target price as we expect the group to post higher net earnings growth of 8.8 per cent in FY2019. Earnings growth will be driven by the turnaround of its foodcourt and kiosk businesses. We raise our estimated FY2019-2020 earnings forecasts of Koufu by 7 per cent each as we impute the positive contribution of the Supertea and R&B kiosk business, better foodcourt sales efficiency, and lower depreciation.

We are more positive than previously, as stock valuations have declined after the recent price correction. Fundamentals continue to be sound, with strong cashflow-generation, defensive earnings, net cash position, and strong return on average equity.

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to

Companies & Markets


Get the latest coverage and full access to all BT premium content.


Browse corporate subscription here