UOB Kay Hian is initiating a “buy” recommendation on ST Group Food Industries with a target price of 14 cents, as lead analyst Clement Ho likes the group’s portfolio of F&B brands.

In an Oct 7 report, Ho says, “ST Group’s exclusive franchise rights to popular F&B brands has enabled it to rapidly scale up to 121 outlets – across Australia, New Zealand, UK and Malaysia – while maintaining stable net margins at more than 7% (prior to the Covid- 19 impact).”

Some of the master franchise and license agreements with popular brands the group currently holds include PappaRich, NeNe Chicken, Gong Cha, Hokkaido Baked Cheese Tarts and IPPUDO.

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