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Jumbo started at 'add' for strong brand equity & regional growth prospects

Michelle Zhu
Michelle Zhu6/25/2018 12:00 PM GMT+08  • 2 min read
Jumbo started at 'add' for strong brand equity & regional growth prospects
SINGAPORE (June 25): CGS-CIMB Securities is initiating coverage on Jumbo Group with an “add” recommendation and target price of 62 cents, which is based on 23 times CY19F earnings, below its regional peer average of 24.7 times against a three-year EPS
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SINGAPORE (June 25): CGS-CIMB Securities is initiating coverage on Jumbo Group with an “add” recommendation and target price of 62 cents, which is based on 23 times CY19F earnings, below its regional peer average of 24.7 times against a three-year EPS CAGR of 13.9% for CY17-20F.

This is in view of the group’s strong earnings growth outlook for FY19F, which the research house believes could see Jumbo opening its sixth Singapore outlet at the upcoming Jewel Changi Airport complex.

In a report last Friday, lead analyst Colin Tan estimates that a Jewel outlet for Jumbo could yield about $12 million in annual sales for the group by FY20F due to high tourist traffic flow as well as the “novelty effect” which he expects attract “throngs of shoppers and diners” to the new retail complex.

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