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Jumbo kept at 'buy' with positive China expansion & 'excellent performance' in Taiwan

Michelle Zhu
Michelle Zhu1/4/2018 12:27 PM GMT+08  • 2 min read
Jumbo kept at 'buy' with positive China expansion & 'excellent performance' in Taiwan
SINGAPORE (Jan 4): Maybank Kim Eng is maintaining its “buy” call on Jumbo Group with a target price of 70 cents, implying 26 times FY18 earnings, which is on par with its regional peers.
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SINGAPORE (Jan 4): Maybank Kim Eng is maintaining its “buy” call on Jumbo Group with a target price of 70 cents, implying 26 times FY18 earnings, which is on par with its regional peers.

The research house recently hosted a non-deal roadshow (NDR) for Jumbo in Singapore, where key discussions included the group’s franchising growth strategy, expansion growths in China and operational updates.

In a Thursday report, analyst John Cheong notes Jumbo’s plans to accelerate its expansion business via franchising from FY18 onwards by upping its outlets per year to four from one previously. This comes on expectations for the franchising business to contribute to more than 20% of earnings from 0% currently within the next three to five years.

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