Expiry:
Target Price
$0.18
(-29.41%)
NOW:

$Kimly(1D0.SI)
- P/E high at 13.7x, go to 10x for estimation
- Lackluster growth (FY2018 sales and profits see mere 5.3% and 2.1% yoy growth)
- Slew of bad news (Kimly Exe Chairman Lim Hee Liat and Exe director Chia Cher Khiang under investigation by the MAS & CAD.
- Backing off from Asian Story's acquisitions bcos Pokka intends to cut the outsourcing manufacturing for them.
- Cost pressures on labour, food cost, rental cost and expansion cost
- No competitive moat (you only go there for convenience sake)

Check out other stocks here: http://bit.ly/InvestorsExchange

Read more
6 likes
19 comments
CoryLogics

Management Integrity is very important to retailer which are already disadvantaged to insiders.

lbs

Firstly, you want to know if the management is honest. There is 101 ways for management to siphon money.
If the directors are proven dishonest, no amount of investment will make sense.

Secondly, if the directors are indeed honest, you want to check if you are overpaying for an investment. It seems like this company is able to generate around 20m of free cash flow. It is now priced at 280m

I think even without the prospect of growth, I would hesitate to call this an overpriced investment, although not a screaming bargain.

BTW, since when is a PE of 13.7 consider high? :|

cullypok

Reply to @lbs : With two of its most senior management staff under CAD and MAS probe, barely a year after IPO, it’s naivety or sheer stupidity at best. i wouldn’t touch it with a 10 foot pole, 13.7x PE or not.

  View More Replies Small loading
simonloo

Unless they can show they have "clean" up this mess, it would be rather hard to believe such things do not repeat again. I won't invest in kimly but i may trade in it.

SSJ4

1 way street

cullypok

Reply to @SSJ4 : Justifiably so

cullypok

Barely a year post IPO and already it’s senior mgt under CAD probe. Regardless of financials, this kind of company stay clear la, warrau ehhh....

GrowthInvestor

barring the recent bad news, the financials actually very strong in SGX, the ratios and margins even better than many of the SG blue-chips https://www2.sgx.com/securities/stock-scre... Mgmt also looking out for growth opportunities and cost controls. With the large cash hoard, it is able to do M&A or increase dividends.

Smallcapasia

Reply to @GrowthInvestor : Agree on the strong financial position. But the 1st acquisition ends up in doldrums, and i don't see many complementary targets for them if it comes to M&A.

losemoneyinvestor

No competitive moat?
Can elaborate further?

losemoneyinvestor

Reply to @Smallcapasia : Can't believe you just said that. Lol good luck

  View More Replies Small loading

Recommended & Related Posts

$Kimly(1D0.SI) Added $Kimly(1D0.SI) writeup here -> https://docs.google.com/spreadsheets/d/1Ql...

Lots of cash but under probe by MAS & CAD; not a good sign! Lost acquisition of Asian Story Corp (ASC) means its growth is going to come to a halt...

Read more
Smallcapasia Verified business started a poll
Read more
Blue Chips/Slow Growers (Large Mature Companies, usually provide regular dividends)
9 votes
Stalwarts (Medium-growth stocks w/ High single-digit to Low Double-Digit growth rates)
7 votes
Fast Growers (usually small caps w/ double-digit earnings growth rates)
31 votes
Cyclicals (typical airline, automotive, chemical, property companies depending on market cycles)
5 votes
Turnarounds (High Risks but Rewarding if Mgmt can steer the sinking ship on right course)
5 votes
Asset Plays (Trading below assets' value -> think cash, properties, investments, trademarks etc.)
2 votes
59 votes
Voting is ongoing
Smallcapasia Verified business started a poll

Happy National Day to Singapore!


In conjunction with Singapore's bday and icon as a food paradise, I have listed down all our listed Food Companies below (let me know if i miss any).


Vote for the company you want to be added into our stocks' database here - http://bit.ly/InvestorsExchangeNew.


Top 3 most voted by the end of 9th August 2018 23.59pm will take precedence ahead of others! Let the "Foodie Game" begin!


$Old Chang Kee(5ML.SI) $QAF(Q01.SI) $Japan Foods(5OI.SI) $RE&S Hldg(1G1.SI) $Neo(5UJ.SI) $ABR(533.SI) $BreadTalk Grp(CTN.SI) $Jumbo(42R.SI) $Katrina(1A0.SI) $Kimly(1D0.SI) $Sakae(5DO.SI) $Koufu(VL6.SI) $No Signboard(1G6.SI) $Soup Restaurant(5KI.SI) $Tung Lok Rest(540.SI)

Read more

Update: Added $CSE Global(544.SI) and $ComfortDelGro(C52.SI) in the spreadsheet - https://docs.google.com/spreadsheets/d/1Ql...

Do you have the habit of looking at whether the outlet or the product you buying is part of a listed company?

I always do that and it sort of irritates my wife once i start talking about them e.g. Dear you know Din Tai Fung is part of $BreadTalk Grp(CTN.SI) and has the highest margins of them all? LOL

Sometimes, i will even go try out the products just to do some 'research' or professionally they call it 'scuttle-butt'. Check out my Asian Story drinks, where the company is acquired by $Kimly(1D0.SI) for $16 million. I can still remember the "So?" face from my wife when i tell her this news. Or how ichiban sushi ($RE&S Hldg(1G1.SI) is moving towards the quick service restaurants for higher margins but i still see a reasonable patron-ship for the restaurants.

Anyway, i guess I have found my Ikigai through investing. And i decided to carry on the legacy from @LauShiErn to build a database of Asia stocks (Singapore, Malaysia, Hong Kong). I spoke to him and he is open to it.

If you are also keen to join me, feel free to add in your views/analysis on the Google Sheets here (https://docs.google.com/spreadsheets/d/1Ql...). I will be adding the stocks bit by bit as i go about studying them via their annual reports and stuff.

On a last note, you can also post your Q&A in the comments and i will prioritize the stocks into the Google sheets as we go along. Cheers!

Read more

$Kimly(1D0) now its $0.45, will it drop further?! Bargain mah?

Read more

There are more for you ...

View more and participate in our discussion now. It's FREE.

Creating an account means you’re okay with InvestingNote's Terms and Conditions