SINGAPORE (Nov 11): OCBC is keeping its “sell” call on Breadtalk with lower $1.09 fair value on lower than expected 3Q bottom line as well as higher gestation costs.

Although 3Q revenue was up 4.7% to $161.7 million, meeting 24.5% of OCBC’s FY15 forecast, PATMI declined 60% to $1.6 million, forming just 12.6% of its full-year estimate.

In a Wednesday report, lead analyst Jodie Foo says start-up costs continue to hit the profitability of Breadtalk’s Food Atrium division.

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