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.