SINGAPORE (Nov 25): UOB Kay Hian is initiating coverage of Jumbo Group with a “buy” rating and target price kept at 49 cents.

In a note to clients, the research house says investors can look forward to strong earnings growth and robust cashflow generation from the Singapore based food & beverage chain operator that specialises in chilli cra.

“Riding on its strong brand equity, Jumbo has enjoyed success in its initial entry into the Chinese market,” says UOB KayHian indicating that Jumbo has an expected high 2016 return on equity of (of 24%, versus an industry average of 15%).

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