SINGAPORE (Dec 11): SAC Capital is initiating a “buy” recommendation on food court and coffeeshop manager Koufu with a target price of 87 cents.

In a Wednesday report, lead analyst Chow Zheng Jie says, “We like the strong ROE [return of equity], cash generative and defensive business model. And we expect more new outlets, new facility and overseas expansion will be the impetus for earnings growth.”

Koufu has guided that its new integrated facility at Woodlands will be operational in 1H20. This facility will consolidate and expand its central kitchen capacity, enabling central procurement, food preparation, processing and distribution to the eateries.

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