Japan Foods Holdings *Official* (SGX: 5OI)

[Jupiter2017]

Japan Foods Holdings *Official* (SGX: 5OI)
Starting a new thread.

 

[Jupiter2017]

http://www.businesstimes.com.sg/com...-talks-with-potential-jv-partner-in-indonesia
Japan Foods Q3 profit up 73%, in talks with potential JV partner in Indonesia
Wed, Feb 07, 2018 - 8:03 AM Andrea Soh sandrea@sph.com.sg

STRONG revenue growth gave a fillip to results for Japan Foods Holdings for its third quarter, which also said that it is in advanced talks with a potential joint venture partner in Indonesia.
Net profit for the quarter leapt 73.1 per cent to S$2.5 million from the year-ago period, the group said in a Singapore Exchange filing on Wednesday morning.
For the three months ended Dec 31, revenue rose 11.4 per cent to S$18.7 million from the preceding year. The expansion in revenue was due to strong contribution from its Ajisen Ramen, Menya Musashi and Shitamachi Tendon Akimitsu brands, it said.
Earnings per share grew to 1.44 Singapore cents from 0.83 Singapore cent in the preceding year.
The firm reduced its number of restaurants to 48 as at Dec 31, down from 50 a year earlier.
The strong sales and profit performance despite the lower number of restaurants is testament to the strength of its brands and effectiveness of its dynamic restaurant portfolio management, said its executive chairman and chief executive Takahashi Kenichi.
Japan Foods said that it is cautiously optimistic about the outlook for the next 12 months, and that the operating environment remains challenging due to the tight labour market, stiff competition, rising business costs and uncertain economic and geopolitical outlook.
The group added that it will continue efforts to improve operational efficiency and cost control, and to explore opportunities to expand its presence in Asean and Japan.
It is in advanced talks with a potential joint venture partner in Indonesia, and will make an announcement as and when appropriate.
The stock closed at 42 Singapore cents on Tuesday, down two cents or 4.5 per cent.

price link: http://www.shareinvestor.com/fundamental/factsheet.html?counter=5OI.SI

 

[Perisher]

Vested few months back. Huat arh.

 

[numbers]

Vested few months back. Huat arh.

huat ah maybe can finally rocket up!

 

[Perisher]

huat ah maybe can finally rocket up!

Hopefully.

 

[Shion]

Japan Foods serves growth and expansion on a platter: KGI Securities​

https://www.theedgesingapore.com/ca...s-growth-and-expansion-platter-kgi-securities
KGI Securities is maintaining its “outperform” rating on F&B group Japan Foods Holding, with a decreased target price of 56 cents from 65 cents previously, as analyst Joel Ng accounts for a weaker FY2022 ending March 2022 due to the delayed reopening plans in Singapore.

This follows Japan Foods’ latest 1HFY2022 results announcement. It has reported a $1.6 million loss, reversing from the $0.3 million earnings recorded the year before.

The losses recorded are despite higher revenue of $21.2 million logged for the period, up 14.5% y-o-y driven by higher revenues from brands including Afuri Ramen, Ichiro Ramen, Fruit Paradise and Yonehachi, as well as contributions from new halal brand Tokyo Shokudo.

The group declared an interim dividend of 0.5 cents per share, lower than 0.75 cents issued in the previous year.

Ng notes that Japan Foods operated 52 restaurants in Singapore as at end-September, a slight increase from 50 as at end-March, but a decline from 59 as at end-September 2020.

“However, we believe the worst is behind us. The break of dawn brings new opportunities, which the group has taken advantage of to expand into areas such as Halal-certified restaurants,” says Ng.

Meanwhile, the group’s venture into Tokyo has been delayed due to the pandemic. But, on a positive note, the group has retained a well-located store in Tokyo that can start operations without the need for major operations. “We understand that Japan Foods pays a minimal fee to retain the location and can potentially open in March 2022. The success of this restaurant would be a key element to Japan Foods’ growth profile as it would open up a completely new market for the group,” Ng says.

The analyst believes that the group’s revenue mix is better diversified now. While Ajisen Ramen’s 29.7% revenue contribution in 1HFY2022 is still the largest, it is down from 35.1% in the prior year period. Other brands that are contributing more include Tokyo Shokudo (15.2% of 1HFY2021 revenue), which is the group’s first-ever Halal certified restaurant that was started in FY2021. Japan Foods now has six Tokyo Shokudo restaurants (end-September).

“After more than one and a half years of start-stop dining restrictions, we believe Singapore is finally ready to ease restrictions on a more sustainable basis,” says Ng, adding that the recent announcements of the vaccinated travel lane (VTL) for up to 16 countries and easing of restrictions of dining out for vaccinated people from the same household is evidence of the government’s focus to treat Covid-19 as endemic.

Overall, Ng sees a brighter future for the F&B industry with increasing vaccination rates and improving treatment for Covid-19.

Despite an expected weaker FY2022, the analyst believes that Japan Foods is in a favourable position to grow and expand its market share given its flexible and resilient business model. “We particularly like its ability to rotate among its restaurant brands and constantly bring in new concepts, supported by its rock-solid balance sheet,” he adds.

At 4.45pm, shares in Japan Foods are trading at 41 cents, giving it a FY2022 price-to-earnings ratio of -59 times and a dividend yield of 2.4%.

 

[Shion]

Japan Foods’ plans to resume international expansion to support higher profits in the medium term: RHB​

https://www.theedgesingapore.com/ne...ional-expansion-support-higher-profits-medium
RHB Group Research analyst Shekhar Jaiswal has maintained his “buy” call for Japan Foods Holdings, lifting his target price to 55 cents from the previous 50 cents, representing a 31% upside.

He has also made slight upgrades to his FY2023 and FY2024 estimates, amid expectations of a gradual revival in consumer discretionary spending as Singapore is now fully open for business and tourism.

“While a return to pre-pandemic earnings may still be few years away, Japan Foods’ plans to gradually resume its international expansion should support higher profits in the medium term,” says Jaiswal.

He adds that the reopening of the domestic economy and the international borders would boost Japan Foods’ revenue for the next 12 months. "The firm is also in a much better position to ride the recovery, as the pandemic has lowered competition with many food and beverage (F&B) operators either shutting or scaling back operations."

To note, Japan Foods had cut its restaurant count to 50 during the pandemic but had increased it to 52 as at September 2021.

Jaiswal further highlights that Japan Foods’ flexible business model puts it in a favourable position to expand market share. RHB likes its ability to rotate restaurant brands across over 50 leased spaces in major retail locations and constantly introduce new concepts.

Despite Covid-19, Japan Foods launched its new halal concept restaurant Tokyo Shokudo, which has received positive responses from the Muslim community since its Nov 2020 launch. In about 10 months, Tokyo Shokudo restaurant numbers have expanded from one to six, generating $3.2 million revenue in 1HFY2022 or about 15% of 1HFY2022’s total revenue.

Remaining focused on raw material costs, Japan Foods was able to keep its gross margins above 84% throughout the pandemic. While FY2021 EBIT was supported by government grants, RHB’s FY2023 EBIT already factors in a zero government support.

Japan Foods had no borrowings and a cash balance of $18.2 million as at September 2021. During FY2018-FY2020, its dividend payout ratio stood at 68%-214%, Jaiswal notes. In its 1HFY2022 results presentation, Japan Foods said it will be revising its dividend policy to distribute at least 100% of net profit as dividends from FY2022. RHB estimates Japan Foods' dividend yield to be above 5% for FY2022-FY2023.

As at 10.13am, shares in Japan Foods are trading flat at 42 cents.