By Phillip Capital

May 24, 2021

  • Jobs Support Scheme (JSS) grants to be enhanced to 50% from 10%.
  • Footfalls at food courts dropped following Singapore’s move to Phase 2 (Heightened Alert).
  • Commencement of integrated facility operations delayed to 3Q21.
  • Downgrade from ACCUMULATE to NEUTRAL with a lower target price of S$0.64 from S$0.68. Still based on 18.5x FY21e, the average of its peers. We cut revenue for FY21e/FY22e by 1.8%/1.9% and PATMI by 6.1%/8.0% as the consumption recovery is taking longer to pan out.

Koufu provided an operational update on the impact of Singapore’s move from Phase 3 (Heightened Alert) to Phase 2 (Heightened Alert) following a sharp spike in unlinked community COVID-19 cases. In a bid to curb the chain of transmissions, further restrictions have been imposed. These include prohibition of dining in at all food outlets, a capping of social gatherings and activities to two persons, reduced capacity for malls and work from home as the default mode of operations.