- We make no change to our NEUTRAL weighting for the Singapore downstream F&B food services sector. We have a BUY call for Kimly and a NEUTRAL rating for Japan Foods.
- - Read this at SGinvestors.io -
- We remain cautious on Japan Foods (SGX:5OI), amid anticipated operating margin pressure vs a slightly stretched valuation.
Singapore Department of Statistics’ (SingStat) Food & Beverage Services Index has done well in recent months.
- - Read this at SGinvestors.io -
- January’s F&B food services index declined 6.3pts y-o-y to 107.6pts (2017: 100pts), while February’s sales surged 14.8pts to 115.2pts over the same period. Accounting for the difference in timing of both years’ Lunar New Years, both January and February’s F&B food services index collectively increased 8.5pts on the index, over the last year.
- The buoyant consumption momentum following consecutive months of y-o-y improvement bodes well for F&B food service retailers.
Halal segment still in expansion mode.
- Read more at SGinvestors.io.
Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2024-04-24
