More News
FOOD & BEVERAGE | Staff Reporter, Singapore

Jumbo Group looking to expand its store count cautiously in Singapore

It could look to expand in the CBD.

The chilli crab restaurant group is looking to deepen their footprint in the city-state, but at a more cautious pace.

According to analysts from Maybank Kim Eng, its store count forecast has been revised to two stores each in Singapore and Shanghai by 2018, up from one in Singapore and two in Shanghai.

Maybank Kim Eng adds that one of the new outlets could be in the central business district, given the success of Riverside Point and its lack of presence in the CBD.

Meanwhile, Jumbo also had net cash of $59.4m and free cash flow of $10.3m as of 2015.

“We think the group could comfortably pay out 40% of net profits for FY16 and FY17, given its strong net cash position, low future capex requirements and free cash flow generating capability of the business. As such, we raise our dividend payout from 30% to 40%,” Maybank Kim Eng said.

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.