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CGS-CIMB trims target price on Kimly as weaker margins bite

Lim Hui Jie
Lim Hui Jie11/25/2022 02:42 PM GMT+08  • 3 min read
CGS-CIMB trims target price on Kimly as weaker margins bite
The analysts note that Kimly faces rising costs, like elevated food and utilities prices, as well as manpower costs. Photo: Albert Chua/The Edge Singapore
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CGS-CIMB Research analysts Ong Kang Chuen and Kenneth Tan have maintained their “hold” call on Kimly Group, but have trimmed their target price from 41 to 39 cents as the group’s management adopt a more cautious tone.

The analysts’ report came after Kimly reported its results for the 2HFY2022 and FY2022 ended Sept 30. For the half-year period, Kimly recorded a net profit of $15 million, which was 12% lower y-o-y and 16% lower h-o-h, in line with the analysts’ expectations but slightly lower than consensus’ expectations.

Kimly’s revenue for its 2HFY2022 rose to $161 million, which stood 39% higher y-o-y and 3% h-o-h. The higher revenue was driven by better outlet management revenue and new contributions from Tenderfresh.

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