Emerging stronger and primed for expansion
Joel Ng / 65 6202 1192 / joel.ng@kgi.com

• Surviving the pandemic. FY2021’s revenue declined 25% YoY to S$51mn from S$68.4mn in FY2020. Despite the weaker top line, net profit rose 256% YoY to S$3.6mn, from S$1.0mn in FY2020. The increase in profit was attributable to other income rising to S$10.9mn from S$606k in the prior year due to government grants and rental concessions given to businesses in light of Covid.

• Never giving up. JFOODS operated 50 restaurants in Singapore as of end-March 2021, a decline from 59 as of end-March 2020. This drop was mainly due to the impact of Covid-19, in which the dip in dine-ins caused many restaurants to close. The break of dawn brings new opportunities, which the group has taken advantage of to expand into areas such as Halal-certified restaurants.

• Upgrade to OUTPERFORM and higher TP of S$0.65. For many who survived, we expect them to thrive. JFOODS is in a favourable position to grow and expand its market share given its flexible business model. We particularly like its ability to rotate among its restaurant brands and constantly bring in new concepts, supported by its rocksolid balance sheet. We thus upgrade to OUTPERFORM
and raise our TP to S$0.65.