SINGAPORE (Oct 14): Katrina Group is expected to stay profitable in FY17 as it gets ready to launch new restaurants in all its proprietary brands while tapping online food ordering technology, says CIMB analyst William Tng in an unrated note.

Katrina currently owns and operates nine different F&B brands which cater to a diverse group of customers in different market segments. Its restaurants are mostly located in Singapore, with another two in Beijing, China. It also has its own online food ordering and delivery system.

In 1H16, Katrina posted a 34% decline in earnings despite revenue increasing 15% from the opening of five new outlets in 2HFY15.

The lower earnings resulted from higher sales and distribution costs from marketing the launch of its online ordering service and the one-off IPO expense of US$0.4 million ($0.55 million).

As of end June, Katrina remained in a net cash position, and plans to distribute dividends of at least 60% of its FY16 earnings.

The stock currently trades at 13.8 times FY16 earnings and offers a yield of 3.1%. In comparison, Jumbo Group trades at 21.7 times FY16 earnings with a dividend yield of 2.4%.

Shares in Katrina are trading flat at 30 cents.