SINGAPORE (Feb 14): UOB Kay Hian is maintaining a “hold” rating on Jumbo Group even as the restaurant operator posted a 26% earnings growth in 1QFY17.
According to UOB Kay Hian’s analyst Nicholas Leow, the earnings boost arose from the one-off IPO expenses and pre operating expenses for its third Jumbo Seafood restaurant in Shanghai that was incurred in 1QFY16, and did not repeat in the current quarter.
While the quarterly earnings only achieved 14% of UOB Kay Hian’s full year estimates, Leow added that the group’s 1Q and 3Q are seasonally weaker quarters.
