Although given the current economic climate, Koufu is expected to be more cautious with store openings for FY20 and FY21. Koufu opened one new R&B tea kiosk (Eastpoint Mall) and two coffee shops (Blk 602 Tampines Avenue 9 and Blk 215C Compassvale Drive) in the first quarter of 2020. For the rest of 2020, the opening of two new food courts and two new R&B tea kiosks initially slated for opening in the second quarter of 2020 has been moved back to the third quarter of 2020 tentatively.
PhillipCapital is initiating a “buy” call on food court operator Koufu with a target price of 80 cents.
In an Aug 5 report, analyst Terence Chua views Koufu as best in class with a defensive business model and superior growth profile from their overseas expansion plans and the expansion of their new concepts (R&B Tea and their premium vegetarian Elemen restaurants).
