Brokers' take

Kimly Limited | Buy (Maintained) Target price: S$0.46 July 3 close: S$0.37 RHB Research, July 3

Kimly has acquired Asian Story Corp (ASC) for S$16 million in cash. ASC's Asian Story brand portfolio comprises nine different drinks. This brand has a 7.7 per cent market share and is ranked 31st largest in the domestic Asian drinks market.

We understand that it will also be distributing Pepsi and coconut water in the near term. With more beverages in its arsenal, especially Pepsi, this could further boost ASC's profitability.