Japan Foods’ 9MFY24 reported PATMI is well below our estimate, amid higher-than-estimated tax expenses. It continues to ramp up its outlet count, especially the halal-concept restaurants which have performed better than its regular outlets.
Japan Foods (SGX:5OI)’s 9MFY24 revenue of S$65m (+12% y-o-y) accounted for 78% of our FY24 estimate. The growth was driven by expanded halal offerings and a higher number of operating restaurants. Its gross profit of S$55m (+12% y-o-y) was in line with our estimate, as the gross margin is tracking our projection.
- Read this at SGinvestors.io -
Japan Foods’s PATMI turned around to a profit of S$587k in 3QFY24, from a loss of S$130k in 2QFY24. We noticed a sharp rise in tax expenses in 3QFY24, which led to the 9MFY24 reported PATMI acccounting for only 65% of our full-year estimate.
Outlet expansion continues; the group remains focused on growing its number of halal-concept restaurants.
Read more at SGinvestors.io.
Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
Use Trust referral code PGKPSWAE to sign up NTUC Link or Trust Link Credit Card or open a Trust Bank Savings Account: ✨Earn up to S$1,000 cashback rewards 🎟!
