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This stock has plenty of growth on its plate

Michelle Zhu
Michelle Zhu11/28/2016 11:23 AM GMT+08  • 2 min read
This stock has plenty of growth on its plate
SINGAPORE (Nov 28): DBS Vickers Securities is maintaining its “buy” call on Jumbo Group at a target price of 77 cents, with a more bullish sentiment in anticipation of higher growth traction for the group’s outlet expansions, especially in China.
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SINGAPORE (Nov 28): DBS Vickers Securities is maintaining its “buy” call on Jumbo Group at a target price of 77 cents, with a more bullish sentiment in anticipation of higher growth traction for the group’s outlet expansions, especially in China.

The group’s recent headline net profit for 4Q had more than doubled due to better than expected margins, while its management proposed a final dividend per share (DPS) of 1 cent as well as a special DPS of 0.7 cents which represents a 70% dividend payout.

In a Friday report, analysts Alfie Yeo and Andy Sim note that both the group’s gross and operating margins “improved sharply” as compared to 4Q15. They continue to like Jumbo for its rapid growth in China; close to 30% ROE in FY17- 18F; relatively higher margin than peers; cash-generative business; and strong net cash balance.

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