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RHB keeps 'buy' call on Kimly with its latest acquisition

Samantha Chiew
Samantha Chiew5/14/2021 4:14 PM GMT+08  • 3 min read
RHB keeps 'buy' call on Kimly with its latest acquisition
RHB is hungry for more of Kimly.
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RHB Group Research is reiterating its "buy" call on coffeeshop operator Kimly with a higher target price of 42 cents from 39 cents previously, following the group's announcement of its acquisition of a 75% stake in domestic food business Tenderfresh for $54 million, of which $16 million will be paid through a new share issuance at 31.24 cent per unit.

See: Kimly acquires 75% stake in Tenderfresh business for $54 mil

Analyst Jarick Seet says, "We believe that this acquisition is a positive, being both EPS-accretive and in
line with the company’s strategy. This should enable it to expand food concept offerings, and venture into restaurants and halal coffeeshops with high synergistic value."

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