BreadTalk 02 (Aug 10 - Dec 20)

Re: BreadTalk 02 (Aug 10 - Dec 16)

Postby winston » Fri Jul 08, 2016 10:07 am

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Divestment Gain Props Up Bottomline This Quarter

Market Cap: USD241m

We expect its Food Atrium division to remain a drag on profitability in 2016, as it continues to close down unprofitable stores and open new locations. Maintain BUY with an unchanged SGD1.42 TP (21% upside).

Bottomline would likely be powered by Din Tai Fung, which remains very profitable and its bakery division that is showing encouraging signs of margin improvements. Management has announced a special dividend of SGD1.35 cents/share this quarter, after a SGD8.5m divestment gain on Katong 112.

Share Data
Avg Daily Turnover (SGD/USD) 0.14m/0.10m
52-wk Price low/high (SGD) 1.02 - 1.45
Free Float (%) 36
Shares outstanding (m) 281
Estimated Return 21%
Shareholders (%)
George Quek 34.0
Katherine Lee 18.6
Primacy Investment 11.0

Expect Food Atrium division to continue losses this year. This division has been the main drag for the past few quarters. We expect further losses in 2Q16, as Breadtalk accounts for store closures in 1Q16 (five stores YTD in China).

Traffic continues to be weak in many shopping malls in China, and is unlikely to improve in the near-term.

Din Tai Fung to be main profit driver in 2016. While some margin improvements are coming through its bakery division, we expect the restaurant division to continue being the main profit driver, post the restructuring completion of Ramen Play.

1Q16 unprofitable without the divestment gain on Katong 112. Bottomline includes a SGD8.5m gain, though it was offset by higher staff costs and store closure provisioning. We estimate PATMI would just break-even this quarter excluding the one-off factors.

Source: RHB

http://rhb.ap.bdvision.ipreo.com/NSight ... 46a16c0aad
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Re: BreadTalk 02 (Aug 10 - Dec 16)

Postby winston » Mon Jul 18, 2016 8:15 am

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Why Breadtalk looks set to outperform

By Zavier Ong

SINGAPORE (July 15): Daiwa is maintaining its “outperform” rating on Breadtalk Group, with a target price of $1.28 on the back of the group’s plans to improve profitability per store via tighter cost controls and store rationalisation.

In the bakery segment, the research house expects a sustained recovery in profitability for the group in 2016E. This comes as the group registered a 10.6% y-o-y increase in EBITDA in 1Q16, attributed to tighter cost control and a reduced focus on outlet expansion, says Daiwa analyst Shane Goh.

In the restaurant segment, the research house expects positive same-store-sales growth for Din Tai Fung outlets and a recovery in Ramen Play stores to drive earnings growth for the group.

In fact, the six existing Ramen Play outlets had registered revenue growth following the closure of underperforming outlets and a re-branding exercise to reposition the brand as a casual dining family-oriented concept.

The group is also committed to expansion in the self-operated outlets segment. However, the group also plans to shutter underperforming food courts in China due to prevailing challenges in the operating environment. This follows the closure of three outlets in China in 2015 and 5 in 1Q16.

Further closures of Ramen Play restaurants, if any, would only occur at the end of each outlet’s lease cycle, which typically lasts for 2 to 3 years.

Moving forward, the group currently does not have further capital-raising plans following a $75 million bond issuance in March 2016. However, the group remains open to selling its stakes in property investments such as AXA Tower and Chijmes if presented with an attractive offer, says Goh.

Breadtalk shares closed 0.4% lower at $1.14.

Source: The Edge
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Re: BreadTalk 02 (Aug 10 - Dec 16)

Postby winston » Thu Aug 04, 2016 8:23 am

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BreadTalk posts 23.3% decline in 1H earnings to $3.8 mil

By Michelle Zhu

SINGAPORE (Aug 3): Bakery chain BreadTalk posted a 23.3% decline in 1H earnings to $3.8 mil from a year ago, on lower revenue from its bakery and Food Atrium businesses.

Total revenue fell 1%
to $304.3 million from $307.3 million a year ago.

The weaker topline was the result of a 5% fall in revenue from its Food Atrium businesses to $80.2 million due to start-up expenses of new outlets, outlet closure write-offs, and higher operating expenses; as well as a 2% drop in revenue from the bakery division due to weaker franchise revenue from China.

Conversely, revenue from the group’s restaurant division grew 6.3% higher to $73.5 million due to strong same-store sales growth, recovery at Ramen Play, and higher contribution from Din Tai Fung Thailand.

“Restaurant division continues its steady improvement supported by both same store sales growth and good cost control,” says BreadTalk in a Wednesday filing.

The group says its bakery division remains on its recovery path, and that it intends to continue to moderate the pace of outlet expansion and focus on cost controls and quality of earnings.

And while the Food Atrium division “still faces certain headwinds” in China, BreadTalk claims that the situation is largely under control following the completion of the group’s evaluation process of the respective outlets within its portfolio.

The group has recommended an interim dividend of 0.5 cent.

Shares of BreadTalk closed flat at $1.12 on Wednesday.

Source: The Edge
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Re: BreadTalk 02 (Aug 10 - Dec 16)

Postby winston » Thu Aug 04, 2016 9:11 am

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BreadTalk Group: 2Q PATMI down 55% YoY

BreadTalk Group released its 2Q16 results yesterday evening.

Revenue was down 3.3% YoY to S$149.8m while PATMI declined 55% to S$1.3m.

1H16 revenue was slightly down by 1% to S$304.3m, meeting 48% of our full year expectations, while PATMI dropped 23% to S$3.8m, forming 32% of FY16F estimates.

Recall that 1Q bottomline was helped by a divestment gain of S$8.5m.

By segment, 1H EBITDA for Bakery and Restaurant improved but Food Atrium's EBITDA declined 77% to S$2.3m with a lower margin of 2.9% (vs. 11.7% in 1H15).

The latter was due to headwinds faced by Mainland China operations, write-offs for outlet closures, gestation costs for new outlets and higher operating expenses.

Source: OCBC
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Re: BreadTalk 02 (Aug 10 - Dec 16)

Postby winston » Mon Aug 08, 2016 8:28 am

Will BreadTalk rise again?

By Gwyneth Yeo

SINGAPORE (Aug 5): RHB is maintaining its “buy” recommendation for BreadTalk Group with a target price of $1.45, despite store closures and the challenging operating environment in 2Q16.

According to RHB analyst Juliana Cai, BreadTalk’s management says the rationalistion exercise for its food atrium division has largely been completed.

The group had closed its Tianjin and Chengdu food courts during the quarter to June. The rationalisation exercise is expected to be completed by 2H2016.

In Singapore, the group’s food court at Ion Orchard completed its renovation works in May, and is expected to report a full quarter’s contribution to the food atrium segment.

As such, Cai expects the group to perform better in 2H16 due to the fewer write-offs from store closures, even as sales remain weak in China.

Cai also noted that the improved supply chain management has led to higher operating margins for BreadTalk’s bakery division, with ebitda for its bakeries segment catching up with that of Toast Box.

“With the mid-Autumn and Christmas festivities in the latter half of the year, we expect the margins expansion to continue into 2HFY2016,” she adds.

For the restaurant segment, which continues to be driven by its Din Tai Fung brand, Cai expects revenue growth to come from its new outlets in Singapore and Bangkok.

“We expect the food atrium division to remain a drag on BreadTalk’s full-year results on the back of a difficult operating environment and write-offs from its streamlining process. However, this should be partially mitigated by margins expansion at its bakery and restaurant businesses.

We also think that 2H16 should begin to see some improvements. This is because the bulk of its store closures have been completed,” says Cai.

Shares of BreadTalk closed 3.2% lower at $1.06.

Source: The Edge

http://smr.theedgemarkets.com/article/w ... 9-87358173
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Re: BreadTalk 02 (Aug 10 - Dec 16)

Postby winston » Thu Nov 03, 2016 10:32 am

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BreadTalk Group: Improved PATMI but mixed performance across segments

BreadTalk Group’s 3Q16 results came in within our expectations.

Revenue was down 2.7% YoY to S$157.3m while PATMI rose 107.7% to S$3.3m. 9M16 revenue was down 1.6% to S$461.7m, forming 73% of our full year expectations, while PATMI was up 8.5% to S$7.0m, constituting 68% of FY16F estimates.

By segment, 3Q16 EBITDA for Bakery improved by 142% but Food Atrium's EBITDA declined 38% to S$3.1m, and Restaurant’s EBITDA was also slightly down by 2.5% to S$8.0m.

Against this set of mixed performance across segments, notably on an overall basis, the group’s 3Q16 results showed improvements in margins (2 ppt up for gross profit margin to 56% and 1 ppt up for est. operating profit margin to 5.7%), suggesting that cost management initiatives may be bearing fruit.

As the stock’s share price has declined to levels around our fair value, we are placing our sell rating and fair value estimate of S$0.99 under review, pending more information from management.

Source: OCBC
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Re: BreadTalk 02 (Aug 10 - Dec 16)

Postby winston » Fri Nov 04, 2016 10:37 am

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BreadTalk Group: Improved results driven by Bakery

BreadTalk Group’s 3Q16 results came in within our expectations.

Revenue was down 2.7% YoY to S$157.3m while PATMI rose 107.7% to S$3.3m.

9M16 revenue was down 1.6% to S$461.7m, forming 73% of our full year expectations, while PATMI was up 8.5% to S$7.0m, constituting 68% of FY16F estimates.

The group’s cost management initiatives, particularly for the Bakery segment, have been bearing fruit.

Looking ahead, we expect a better FY17 as the group keeps a cautious approach to expansion while being focused on improving earnings quality for each of the three segments.

As the stock’s share price has declined to levels around our fair value, we are upgrading the stock from sell to HOLD.

Rolling forward to a blended 23x FY16/17 P/E, our fair value estimate is also raised to S$1.07 (previously: S$0.99).

Source: OCBC
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Re: BreadTalk 02 (Aug 10 - Dec 16)

Postby winston » Mon Jan 02, 2017 9:53 am

BreadTalk founder blends old values with fresh ideas

There are an estimated 500,000 Teochews in Singapore, the second-largest Chinese sub-group, after Hokkiens.

Teochews were originally from eight counties in China's southern Chaoshan region.


Source: Straits Times

http://www.straitstimes.com/singapore/b ... resh-ideas
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Re: BreadTalk 02 (Aug 10 - Dec 16)

Postby behappyalways » Wed Feb 22, 2017 7:43 pm

BreadTalk posts 50.4% rise in FY16 earnings to $11.4 mil
http://www.theedgemarkets.com.sg/articl ... gs-114-mil
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Re: BreadTalk 02 (Aug 10 - Dec 18)

Postby behappyalways » Thu May 04, 2017 4:28 pm

Breadtalk 1Q earnings more than quadruple to $10.7 mil; declares special dividend of 2 cents per share
http://www.theedgemarkets.com.sg/breadt ... ents-share
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