Din Tai Fung

Can BreadTalk rise to the occasion on operating efficiencies and 4orth?

SINGAPORE (Aug 5): BreadTalk may have reported 7.9% higher 1H19 revenue of $321 million from a year ago, however earnings fell 35.3% due to 39.4% higher distribution and selling expenses of $169.2 million and lease expense of $7.3 million due to new accounting standards.

See: BreadTalk posts 35.3% drop in 1H earnings to $2.3 mil on increased expenses

BreadTalk seen less appetising after a weak 3Q; RHB slashes earnings estimates

SINGAPORE (Nov 7): RHB Research is maintaining its “sell” call on BreadTalk Group with a lower target price of 75 cents from $1 previously, after cutting FY18-20 forward earnings estimates by about 30% per annum to factor in the gestation of new businesses as well as higher interest costs.

The research house has also lowered its target EV/EBITDA for BreadTalk’s core business to 5.5 times from 7 times previously in its sum-of-parts valuation to account for a slower growth in EBITDA.

BreadTalk gets too pricey for RHB's taste; FY18 earnings projected to decline

SINGAPORE (Aug 3): RHB Research is downgrading its call on BreadTalk to “sell” from “neutral” with a lower target price of $1 compared to $1.04 previously, as the research house expects FY18F earnings to decline on rising overhead costs and weaker JV & associates performance.

How BreadTalk’s share price can only get hotter

SINGAPORE (April 4): DBS Vickers Securities is reinstating coverage on BreadTalk Group with a “buy” recommendation and a target price of $1.69 following the counter’s turnaround in 2H16 earnings, on the notion that its earnings recovery momentum will spill over to FY17F to lift margins and improve earnings quality.

In a report on Tuesday, analysts Alfie Yeo and Andy Sim say they believe BreadTalk is well-positioned to capitalise on growing food consumption trends in Asia, as well as more opportunities to expand in China.  

Some BreadTalk to whet your investment appetite

Marina Bay Sands

SINGAPORE (Jan 6): RHB has maintained its “buy” recommendation for BreadTalk Group following a three-year revamp to remove its underperforming stores.

According to Juliana Cai, RHB’s research analyst, the group has closed nine poor performing food atrium stores and will be focused on opening new ones in cities where the group has a strong track record. In fact, Cai believes the segment will turn profitable in 2017.

Din Tai Fung JV a ‘favourable addition’ to BreadTalk

Din Tai Fung

SINGAPORE (Nov 17): RHB is maintaining its “buy” rating on BreadTalk Group with a target price of $1.45, while expressing confidence in the group’s ability to venture into the UK market with the Din Tai Fung chain of restaurants.

Earlier today, BreadTalk filed an announcement to the Singapore Exchange (SGX) stating it has entered into a franchise agreement to operate Din Tai Fung restaurants in the UK through a joint venture company with Fairy Rise Development.

The group expects to open its first Din Tai Fung outlet in London next year.

BreadTalk partners Din Tai Fung franchise owner in UK expansion

SINGAPORE (Nov 17): BreadTalk Group says its wholly-owned indirect subsidiary Taster Food UK (TFUK) has entered into an agreement with Fairy Rise Development, the franchise owner of the Din Tai Fung brand of restaurants, for the franchise right to operate the Din Tai Fung brand of restaurants in the UK.

BreadTalk currently operates 21 Din Tai Fung restaurants in Singapore, and three restaurants in Thailand.

Will BreadTalk rise again?

SINGAPORE (Aug 5): RHB is maintaining its “buy” recommendation for BreadTalk Group with a target price of $1.45, despite store closures and the challenging operating environment in 2Q16.

According to RHB analyst Juliana Cai, BreadTalk’s management says the rationalistion exercise for its food atrium division has largely been completed. The group had closed its Tianjin and Chengdu food courts during the quarter to June. The rationalisation exercise is expected to be completed by 2H2016.

BreadTalk posts 23.3% decline in 1H earnings to $3.8 mil

SINGAPORE (Aug 3): Bakery chain BreadTalk posted a 23.3% decline in 1H earnings to $3.8 mil from a year ago, on lower revenue from its bakery and Food Atrium businesses.

Total revenue fell 1% to $304.3 million from $307.3 million a year ago.

The weaker topline was the result of a 5% fall in revenue from its Food Atrium businesses to $80.2 million due to start-up expenses of new outlets, outlet closure write-offs, and higher operating expenses; as well as a 2% drop in revenue from the bakery division due to weaker franchise revenue from China.

Why Breadtalk looks set to outperform

SINGAPORE (July 15): Daiwa is maintaining its “outperform” rating on Breadtalk Group, with a target price of $1.28 on the back of the group’s plans to improve profitability per store via tighter cost controls and store rationalisation.

In the bakery segment, the research house expects a sustained recovery in profitability for the group in 2016E. This comes as the group registered a 10.6% y-o-y increase in EBITDA in 1Q16, attributed to tighter cost control and a reduced focus on outlet expansion, says Daiwa analyst Shane Goh.

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