Kimly Limited

Kimly is one of the few companies which reported improved revenue and profits in their 1st half current financial year. The loosening of the CB (Circuit Breaker) is likely to act as a booster for even better revenue n profits for the 2nd half.

Price history:

Date of post - 22.5 cents

52 weeks low - 17.5 cents

52 weeks high - 25.0 cents

2 year high - 38.0 cents

5 year high - 56.5 cents.

Acquisition in Nov and Dec 2019

The Group recorded revenue of S$107.4millionin 1HFY2020 as compared to S$104.1millionin 1HFY2019. The increase of S$3.2 million or 3.1% was mainly due to the revenue contribution from five (5) new coffeeshops and eight ( food stalls opened in November and December 2019.

Acquisition in June 2020

completed the acquisitions of six food outlets first announced on 21 February 2020 for S$35.5 million, comprising 2 coffeeshops, 3 industrial canteen units and a restaurant unit.

2 other acquisition are in the pipeline

From the above its quite clear that Kimly is on a growth path. Its likely a growth company. !st half result, released on the 11 May 2020 has shown revenue growth of 3% and profit growth of 5%. Next financial year will see the full impact of the acquisitions.

Just sharing. Dyodd

Comments - last year n current year half time results

Criteria Comments

revenue ... good, up 3% against last year same time

profit ... good, up 5% against last year same time

debt ... small debt of 5.9 mil

cash ... excellent cash horde of 75 million

dividend ... good. 0.28 at half time and 0.42 at 2nd half.
Full year estimated at 0.7 cts

div yield ... good at 3.2 % (estimate)

p/e ... low relative to other listed food companies.
Trailing p/e is 12.5 X against its historical p/e of around 20 X.

price ... cheap compared against its historical p/e of 20X

gross margin ... good n trending higher. Previous year 19.6 %. Current year 21.6%

net margin ... good n trending higher. Previous year 9.6%. Current year 9.8%

future ... very good. See below:
1) 5 new coffee shops n 8 food stalls, acquired in Nov and Dec 2019
2) 2 coffee shops, 3 industrial canteens and 1 restaurant,
acquired in June 2020.
3) 2 other acquisitions in the pipeline
4) productivity has gone up as can be seen from the improved
gross margin and net margin.

price ... current - 22 cents
52 weeks low -17.5
52 wks high - 25.5
2 year high - 38.5
5 year high - 56.5

Quote taken from management comment:

Moving ahead, the Group will continue exploring similar opportunities to increase
its own portfolio of food outlets with the view of enhancing long-term shareholder
value and to mitigate the uncertainties in the private leasing category which could be influenced by market competition.

Barring any unforeseen circumstances, the Group expects to continue to grow
its business and remain profitable for FY2020.

RHB issues a buy recommendation on Kimly:

Kimly RHB.pdf