In a report last Thursday, analyst Jarick Seet says he expects ongoing investigations to create an overhang on Kimly’s stock and generate some negative sentiment – even as the group intends to continue expanding its footprint and diversify product offerings, as well as synergise central kitchen operations.
SINGAPORE (Feb 20): RHB Research is maintaining “neutral” on Kimly Limited with a lower target price of 24 cents after lowering FY19F PATMI by 5% and says it sees limited potential upside to the stock despite its reasonable valuations.
This comes post the release of Kimly’s 1Q19 earnings results, which reflected a lower y-o-y bottomline despite revenue growth, as distribution and selling expenses rose on the back of higher online delivery fees and packing materials used.
