DBS is keeping its “buy” recommendation on food court operator Koufu with an unchanged target price of 77 cents, despite the group reporting less than stellar FY2020 results.

In its final year ended December 2020, Koufu posted revenue of $192.4 million down 19% from the preceding year, as circuit breaker measures earlier in the year hurt overall sales. However, coupled with writedowns and other one-off items, the company’s earnings dropped by 64.3% y-o-y to $9.9 million.

Pang Lim, Koufu’s executive chairman and CEO  believes that despite the woes this past year, the company is better positioned to capture growth ahead. “We have emerged stronger as a business by working with strategic and complementary partners to reinforce our business and revenue streams,” says Pang.

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