Home Issues Stocks To Watch

Kimly: WFH norm brings unique F&B stock closer to heartlanders

Samantha Chiew
Samantha Chiew1/27/2022 04:49 PM GMT+08  • 3 min read
Kimly: WFH norm brings unique F&B stock closer to heartlanders
Kimly is a stock to watch this year.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

There is a certain attraction to being a rarity. With food court operator Koufu’s privatisation bid, Kimly will become the only F&B operator with a focus in the heartlands, where business remains resilient amid the pandemic.

CGS-CIMB analyst Kenneth Tan, who has a “buy” call and 56 cents target price on the stock, notes that Kimly is currently trading at an undemanding valuation of about 13 times FY2022 P/E (–1 standard deviation from fiveyear historical mean), a significant discount to Koufu’s privatisation valuation of 16 times P/E.

Even as more companies allow their employees to return to their offices, work-fromhome (WFH) arrangements have also become the new norm for many. Kimly’s extensive network of coffee shops in the heartlands gives it a “captured” pool of customers in the form of residents, whether dining-in or takeaway.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now