CGS-CIMB is the only brokerage with a formal coverage of this stock.
For its 1HFY2023 ended March, the company reported earnings of $7.9 million, versus a loss of $4.5 million in the year-earlier period, when the effects of the pandemic were still apparent.
Revenue in the same period was up 73% y-o-y to $86 million, along with an improvement in gross margin to 6.1%, up 3 percentage points.
The company's Singapore operations grew particularly strongly, up 134% y-o-y, driven by the combination of the return of tourists, spending of expense accounts and menu price hikes.
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Jumbo, which is diversifying its offerings with mass-market hawker food as well, enjoyed higher contributions from four new outlets under the Kok Kee wanton noodle brand.
In their May 16 note, Tan and Ong raised their FY2023 and FY2024 earnings forecast by 21 and 47% respectively, as they factor in better Singapore sales recovery and stronger-than-expected profitability.
The raised target price of 40 cents is pegged to 20 x forward FY2024 earnings.
