Brokers' take

Jumbo Group | Hold Feb 19 close: S$0.575 Target price: S$0.59 UOB Kay Hian Research, Feb 19

Jumbo's Q1 FY2018 results came in below expectations. Net profit fell 19.8 per cent S$2.1 million due to higher operational expenses, higher salaries to support new outlets and higher promotional activities. Gross margins were negatively impacted mainly due to aggressive promotions.

We lower our FY2018 core earnings estimate by 3.6 per cent as we lower our gross margin assumption slightly and increase our other operating expenses assumption.