Living in a nation with many different cuisines, Singaporeans are blessed with a buffet of choices when it comes to deciding what to eat. The same can also be said for the stock market as it serves up a platter of juicy companies belonging to the food and beverage (F&B) industry. However, not all F&B businesses enjoy the same fervent following. Over time, some may lose their allure, while others go from strength to strength to conquer other countries and regions. Brand-building is as much an art as a science, and some companies have managed to generate the right kind and amount of buzz to ensure their continued longevity. Here are two F&B businesses that are growing rapidly, and I believe both also have strong brands that are recognised in many Asian countries besides Singapor

I was watching one of those televised Oval Office presidential briefings the other day. Specifically, it was the one in which Trump was trying to justify his claim that hurricane Dorian would hit Alabama. Of course the chances of Dorian affecting the southern state were as slim as me winning the lottery…. …. it would seem that someone had taken a felt-tip pen to extend the path of the deadly hurricane on an official weather map to include Alabama. It’s laughable but true. Who would do such a bone-headed thing? But this is just one of many untruths that has been peddled by the current US administration. That made me think. How can anyone possibly make investing decisions based on lies, deceptions and exaggerations? One of the things that we need when we invest is reliab

On 2 September 2019, BreadTalk announced its acquisition of Food Junction for $80 million to become the third largest food court or coffeeshop player in Singapore with 26 outlets, behind NTUC Foodfare/Kopitiam (10+52 outlets) and Koufu (47 outlets). Currently, Food Junction has 12 food courts in Singapore and three in Malaysia, with an additional one expected to open in 2020 at The Mall, Mid Valley Southkey. Unlike BreadTalk’s Food Republic which targets the premium segment, Food Junction has more of a mass-market appeal with a 10 to 15 percent lower average ticket size. As such, management believes that the location of Food Junction food courts would fit into the existing portfolio of BreadTalk which will allow the group to cater to a different market segment and expand into non-traditi

BreadTalk Group Limited (SGX: CTN) is a food and beverage group with close to 1,000 retail stores spread across 16 countries. The group has four main divisions: bakery, restaurant, food atrium and 4orth food concepts. Its brand portfolio comprises well-known brands such as BreadTalk, Toast Box, Food Republic, Bread Society and So Ramen. While BreadTalk owns many recognisable brands that Singaporeans are familiar with, investors need to understand if the business is a great one to own. In other words, it’s important to determine if the group has a high-quality business that can differentiate itself from the competition. I looked into three aspects of BreadTalk in order to assess if the business could be a great one for investors to consider. Revenue and net profit growth The table a

Investors looking for bargains in the stock market should look no further than Prudential Plc (SGX: K6S). The insurance giant, which is listed on four different exchanges, has seen its stock price fall nearly 20% in recent months as the ongoing trade war and Hong Kong protests have dimmed investor sentiment. However, long-term investors could be salivating at the prospect of picking up shares of the insurance company at a historically low valuation. Here are three reasons I believe now could be a great time to invest in Prudential Plc. M&G Prudential demerger could provide a catalyst for valuations Prudential announced that it plans to demerge M&G Prudential from Prudential Plc, which will result in two separately listed companies. Investors who pick up shares now will effectively

Last week BreadTalk Group Limited (SGX: CTN) announced it would open its wallet to shell out S$80 million for Food Junction. My colleague Royston described some of the salient points of the acquisition in an earlier article. In this article, I’ll take a deeper look at whether BreadTalk is overpaying for the food court operator.  Compared with previous transactions In 2013, Auric Group successfully privatised Food Junction (which was a listed company back then) by buying the remaining 39% stake in Food Junction that it did not already own. At that time Auric Group made an offer valuing Food Junction at S$30 million. In 2017, Lippo’s Riady family successfully privatised Auric Pacific Group, valuing the company at S$48.3 million. Auric Pacific Group, besides owning Food

It is the return of the prodigy as BreadTalk’s founder, George Quek, is reclaiming his throne – “Singapore Foodcourt King”. Since my last article on BreadTalk share price, this counter took on a life of its own when the bread company made headline news for splashing out $80 million for the acquisition of Food Junction. Many analysts balked at the price tag and there were plenty of critics claiming that BreadTalk had overpaid for a project that earned net profit of merely $3183. On the contrary, I rate the acquisition positively despite the short-term harm it may cause to BreadTalk share price. In my view, the naysayers could be missing the forest for the trees. Many readers are not going to agree with my analysis but I do think that context is important here and one should not

BreadTalk Group (SGX: CTN), recently announced its acquisition of food court operator Food Junction Management ... Read more >>

Here are some stocks that saw interesting developments in the past week. Dasin Retail Trust (SGX: CEDU) This China retail real estate investment trust (REIT) halted trading to announce the launch of a private placement to raise up to S$68.8 million. The new units will be issued at S$0.836 per new unit, around a 3% discount to the market price of S$0.86 before the trading halt. Approximately S$61.3 million of the money raised will be used to fund the purchase of Doumen Metro Mall, with the remainder used to pay for expenses and fees related to the placement and acquisition. The private placement, if fully subscribed, seems to be decent for existing unitholders as the new units are at a discount to book value and are only a slight discount to the prevailing market price. The new units also

BreadTalk Group Limited (SGX: CTN) is a food and beverage conglomerate with four key divisions – bakery, food atrium, restaurant and 4orth concepts. The group has close to 1,000 outlets spread across 16 countries, and its brand portfolio consists of directly-owned brands such as BreadTalk, Toast Box and Food Republic, as well as partner brands such as Din Tai Fung and Song Fa Bak Kut Teh. Yesterday, BreadTalk announced a major acquisition – proposing to buy over the entire issued share capital of Food Junction Management Pte Ltd (“FJM”) for a cash consideration of S$80 million from vendor Auric Pacific Group Limited. FJM is in the business of operating food courts and food and beverage (F&B) outlets in both Singapore and Malaysia – it’s an instantly

It was announced yesterday that Breadtalk would buy Food Junction for $80 million. When I heard this news, I was surprised but at the same time, personally thought that this decision for Breadtalk to diversify into the foodcourt business was not without risks. There are two main risks. First the foodcourt industry here in Singapore… Continue reading BREADTALK TO BUY FOOD JUNCTION! WHAT ARE THE RISKS? The post BREADTALK TO BUY FOOD JUNCTION! WHAT ARE THE RISKS? appeared first on SG STOCKS INVESTING.

BreadTalk Group Limited (SGX: CTN) has been expanding aggressively into other countries and adding new brands to its burgeoning stable of food brands. Can the group continue to sustain its dividend payment?

These days, it is extremely tough being a food and beverage (F&B) vendor in Singapore due to increasing rental, labour and raw materials cost pressures. In this cut-throat environment, turnaround of stallholders are rife, resulting in lesser visibility and operational uncertainty.   Despite the highly competitive and challenging F&B environment, the operator and manager of food courts and coffee shops – Koufu Group (Koufu) reported a rather solid 1Q19 and had recently been receiving rather positive recommendations from the street.   Defensive Earnings  The top line grew at a compounded annual growth rate (CAGR) of four percent to $223.8 million in FY18. In 1Q19, revenue continued to increase 4.9 percent to $57.8 million, boosted by a 9.2 percent and 0.7 percent growth in

What a revelation. Investors must have that “uh-oh” feeling as BreadTalk share price plunged by 39% since reaching a record high in July 2018. It has been nearly 2 years since I last covered BreadTalk share price. Back then, I predicted that BreadTalk share price would be bullish with the purported property divestments. Indeed, since that article, BreadTalk had enjoyed a splendid bullish spell in 2018. But as the saying goes, what goes up must come down. This is the case for BreadTalk share price, which spiralled out of control from the peak of July 2018. Following the stock split of 1-into-2 shares in May 2018, BreadTalk share price went into some sort of concussion and subsequently lost its bullish momentum. What could have led to the devastating meltdown of BreadTalk share price an

What a revelation. Investors must have that “uh-oh” feeling as BreadTalk share price plunged by 39% since reaching a record high in July 2018. It has been nearly 2 years since I last covered BreadTalk share price. Back then, I predicted that BreadTalk share price would be bullish with the purported property divestments. Indeed, since that article, BreadTalk had enjoyed a splendid bullish spell in 2018. But as the saying goes, what goes up must come down. This is the case for BreadTalk share price, which spiralled out of control from the peak of July 2018. Following the stock split of 1-into-2 shares in May 2018, BreadTalk share price went into some sort of concussion and subsequently lost its bullish momentum. What could have led to the devastating meltdown of BreadTalk share price an

BreadtTalk Group Limited’s (SGX: S08) share price is near a 52-week low. Is it a good time now for investors to consider buying?