The group is one of Singapore’s most recognisable F&B operators which has evolved into a regional player, Ng says.
The analyst notes that FY2025 ended Sept 30 was a transitional year for the group, as revenue remained resilient at $190.3 million and PATMI declining 36.6% y-o-y to $8.7 million primarily driven by front-loaded operating expenses.
Despite these pressures, Jumbo retains $29.9 million net cash, supporting shareholder returns with a declared dividend of 1.25 Singapore cents in FY2025.
“Jumbo’s outlook focuses on an earnings inflection in FY2026,” Ng says.
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The analyst cites full-year contributions from new outlets, along with the consolidation of the central kitchen and headquarters in FY2026 as factors expected to eliminate duplicate rental costs, unlock operational synergies, and reverse current margin compression.
Furthermore, Jumbo’s expansion via an asset-light franchising model in high-growth markets like South Korea and Vietnam provides a scalable avenue for high-margin royalty income further strengthens growth potential, Ng notes.
With profitability expected to rebound in FY2026 driven by operating efficiency gains, margin normalization, contributions from new outlets and asset-light regional expansion, Ng’s blended target price of 34 cents (P/E and EV/EBITDA-based) implies about 21% upside from current level.
Shares in Jumbo Group closed flat at 28 cents on Dec 19.
