May 9, 2014
TP
Revision
COMPANY
RESEARCH
|
SEE PAGE 11 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS Co. Reg No: 198700034E MICA (P) : 099/03/2012
BreadTalk Group (BREAD SP)
Gunning for growth
1Q14 results were within expectations, though...
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May 9, 2014
TP
Revision
COMPANY
RESEARCH
|
SEE PAGE 11 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS Co. Reg No: 198700034E MICA (P) : 099/03/2012
BreadTalk Group (BREAD SP)
Gunning for growth
1Q14 results were within expectations, though seasonally
weakest historically. Net profit attributable up 11.6% YoY.
Our discussions with management boost our confidence that
there are multiple avenues for growth.
With solid growth plans ahead, we take our TP higher to
SGD1.95, based on 8x FY14E EV/EBITDA. Reiterate BUY.
Seasonally weaker results
BreadTalk reported 1Q14 core PATMI of SGD1.8m (+11.6% YoY),
which accounted for 12% of our full-year forecast. We consider the
results to be in line as first quarter is seasonally the weakest.
Revenue grew 16.7% YoY, led by all three business divisions.
Operating margins weakened 3.2ppts QoQ and was unchanged YoY
at 2.9% due to higher operating leases and personnel expenses.
The food atrium segment was the star performer, recording a
multi-f
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