Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

Equity Bottom-Up

During the Christmas holidays, overseas friends and relatives visited Singapore and asked me to book a dinner for all at Jumbo Seafood. Of all the restaurants in Singapore, why must we go to Jumbo, I asked? It turns out chilli crab was their must-have dish whenever they visit, and that seafood quality was consistent.This incident spurred me to investigate the company, so here I summarise some points for investors to savour:<ol class=""><li>Its core brands: Jumbo Seafood and NG AH SIO Bak Kut Teh have fairly high consumer ratings in Singapore and China</li><li>A big chunk of management team's remuneration is aligned with the Group's performance</li><li>The company is entering a relatively higher growth phase, with 3-year net profit CAGR at 13.2% between 2017 -2020,  vs 3% CAGR in the past </li><li>Its operating margins and ROE are superior to restaurant peers in Singapore</li><li>The group has a strong balance sheet and positive free cash flow in the last few years</li><li>Jumbo Group has the second-highest ROIC amongst peers (at 22.4%) using a 5-year average figure. At 15.2x FY19 Ex-cash PE, market may be underestimating its growth and strong brands.</li></ol>

During the Christmas holidays, overseas friends and relatives visited Singapore and asked me to book a dinner for all at Jumbo Seafood. Of all the restaurants in Singapore, why must we go to Jumbo, I asked? It turns out chilli crab was their must-have dish whenever they visit, and that seafood quality was consistent.This incident spurred me to investigate the company, so here I summarise some points for investors to savour:Its core brands: Jumbo Seafood and NG AH SIO Bak Kut Teh have fairly high consumer ratings in Singapore and ChinaA big chunk of management team's remuneration is aligned with the Group's performanceThe company is entering a relatively higher growth phase, with 3-year net profit CAGR at 13.2% between 2017 -2020,  vs 3% CAGR in the past Its operating margins and ROE are superior to restaurant peers in SingaporeThe group has a strong balance sheet and positive free cash flow in the last few yearsJumbo Group has the second-highest ROIC amongst peers (at 22.4%) using a 5-year average figure. At 15.2x FY19 Ex-cash PE, market may be underestimating its growth and strong brands.

Hungry Go Where? Jumbo Group Looks Tasty at 15.2x FY19 Ex-Cash and Best-In-Class ROIC

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

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No Signboard Holdings – Singapore Lifestyle F&B Player Debuts on SGX

RE&S Holdings – Operator of Japanese F&B Outlets Debuts on SGX

Thematic (Sector/Industry)

In the recent release of The Committee On Future Economy (CFE) Report, the Singapore government brought up a few key trends that are affecting Singapore's economy, in particular: i) subdued global growth to continue in the next few years ii) rapid technological changes that can give way to new global value chains and production patterns  iii) Political uncertainties with the rising support for protectionism Below is the summary of seven key strategies presented by the Committee:1. Deepen and…

In the recent release of The Committee On Future Economy (CFE) Report, the Singapore government brought up a few key trends that are affecting Singapore's economy, in particular: i) subdued global growth to continue in the next few years ii) rapid technological changes that can give way to new global value chains and production patterns  iii) Political uncertainties with the rising support for protectionism  Below is the summary of seven key strategies presented by the Committee:1. Deepen and…

Singapore: Top Ten Words in CFE Report Highlight the Future of Education

Chairman, sgtradex

Tan Chin-Hwee

Chairman

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/019/992/original/Pisatest.jpg?1485928080" class="editor-image img-responsive" data-smartkarma-image-id="19992"></figure><div class="content-caption">By Theo Müller - Own work, <a href="https://commons.wikimedia.org/w/index.php?curid=837159" target="_blank">CC BY-SA 2.5</a>
</div>I was excited to read about Singapore's top ranking in the Pisa (<a href="https://en.wikipedia.org/wiki/Programme_for_International_Student_Assessment" target="_blank">Programme for International Student Assessment</a>) tests and the perfect score of our IB (International Baccalaureate) achievers.We should be proud of what we have achieved in such a short time as a country. Our position among the best today in educational terms is the result of the hard work and leadership of the Singapore Government and teachers. There are not many things from Singapore that…

By Theo Müller - Own work, CC BY-SA 2.5
I was excited to read about Singapore's top ranking in the Pisa (Programme for International Student Assessment) tests and the perfect score of our IB (International Baccalaureate) achievers.We should be proud of what we have achieved in such a short time as a country. Our position among the best today in educational terms is the result of the hard work and leadership of the Singapore Government and teachers. There are not many things from Singapore that…

Singapore's Education System Must Embrace the Frontier Beyond Academic Achievement

Singapore

Sakae Holdings Ltd. owns and operates restaurants, cafes, and kiosks. The Company also offers food and beverages catering services and franchises its food and beverages brands.

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Sakae Holdings (SAKAE SP)

Hungry Go Where? Jumbo Group Looks Tasty at 15.2x FY19 Ex-Cash and Best-In-Class ROIC

During the Christmas holidays, overseas friends and relatives visited Singapore and asked me to book a dinner for all at Jumbo Seafood. Of all the...

Valerie Law, CFA

No Signboard Holdings – Singapore Lifestyle F&B Player Debuts on SGX

Singapore Exchange Ltd (SGX)

RE&S Holdings – Operator of Japanese F&B Outlets Debuts on SGX

Singapore Exchange Ltd (SGX)

Singapore: Top Ten Words in CFE Report Highlight the Future of Education

In the recent release of The Committee On Future Economy (CFE) Report, the Singapore government brought up a few key trends that are affecting...

Valerie Law, CFA

Singapore's Education System Must Embrace the Frontier Beyond Academic Achievement

I was excited to read about Singapore's top ranking in the Pisa (Programme for International Student Assessment) tests and the perfect score of our...

Tan Chin-Hwee

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