Company Name: BREADTALK GROUP LIMITED
Research House: JP Morgan Chase
JPMorgan starts BreadTalk Group (5DA.SG) at Overweight with $0.70 target price, based on 15x FY11 P/E, according to Dow Jones.
JPMorgan says company has transformed from bakery chain into regional food & beverage player with strong presence in Singapore, China.
Research house notes, company more than doubled number of bakeries, restaurants, food courts over FY05-FY09, delivering revenue and net profit CAGR of 27%, 81% respectively over that period.
Adds wide range of F&B offerings positions it to take advantage of higher disposable income of China’s urban households, rising trend of dining out among mass affluent consumers: “We see strong potential in BreadTalk’s restaurant business, which generates the highest operating margin and average revenue per outlet among its three segments.”
Shares +5.4% at $0.585.
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