Breadtalk

[dydx]

Q1 result just out…..
http://infopub.sgx.com/FileOpen/BTG-1Q14...eID=296109

Aren't the reported PBT of $3.68m (+1.4% YoY) and NP of $1.8m (+11.6% YoY) ridiculously low when compared against the Rev of $140.4m (+16.7% YoY)? When annualised, the imputed full-year NP of $7.2m would translate to a projected EPS of $0.0255 for this FY14. Against today's closing share price of $1.48 - which gives a market cap of $416.4m - I think Mr Market is very bold to peg BreadTalkat at 4.38x of latest (as at 31Mar14) NAV at $0.338/share, and a PER of 58.0x on current-year earnings!!

Someone should ask George Quek point-blank: Why are you growing your company's business base so quickly and taking on so much debts - $180.5m gross and $119.8m net as at 31Mar14, before counting another $87.6m owed to suppliers and others under Trade & Other Payables, and another $58.1m owed under Other Liabilities (Current) - when the expected normal earnings from the business have gone to the landlords and god knows who else?

As business growth for growth sake only does not create real long-term shareholders' value, I believe a massive business revamp to cut unprofitable outlets and markets and even business units should be in order!

[greengiraffe]

http://infopub.sgx.com/FileOpen/BTG-1Q14...eID=296109

Earnings growth so mediocre... with P/B approaching 5X, definitely not a value stock to me...

Not vested
GG

[ksir]

An observation:
Page 9: NAV rises 12.2% from 30.1 cents to 33.8 cent.
But book value rises from $94.0 to $95.3, which is about 1.5%.

I am curious what did I miss or mis-interpreted

[CityFarmer]

An observation:
Page 9: NAV rises 12.2% from 30.1 cents to 33.8 cent.
But book value rises from $94.0 to $95.3, which is about 1.5%.

I am curious what did I miss or mis-interpreted

Share base reduced, thus per share increased larger than BV, due to buy-back? I didn't look at the doc, but a view on the likely answer.

[ksir]

An observation:
Page 9: NAV rises 12.2% from 30.1 cents to 33.8 cent.
But book value rises from $94.0 to $95.3, which is about 1.5%.

I am curious what did I miss or mis-interpreted

Share base reduced, thus per share increased larger than BV, due to buy-back? I didn't look at the doc, but a view on the likely answer.

No, that is not the case.
I would guess the 30.1 cents is as per 31-Mar-2013 and NOT 31-Dec-2013.
But having said that, overlooking such rather important small detail is rather worrying.

(Not Vested)

[Ray168]

Q1 is "traditional" low period of BreadTalk.
Hence we should not use it to extrapolate its earnings for the year.

Q1 result just out…..
http://infopub.sgx.com/FileOpen/BTG-1Q14...eID=296109

Aren't the reported PBT of $3.68m (+1.4% YoY) and NP of $1.8m (+11.6% YoY) ridiculously low when compared against the Rev of $140.4m (+16.7% YoY)? When annualised, the imputed full-year NP of $7.2m would translate to a projected EPS of $0.0255 for this FY14. Against today's closing share price of $1.48 - which gives a market cap of $416.4m - I think Mr Market is very bold to peg BreadTalkat at 4.38x of latest (as at 31Mar14) NAV at $0.338/share, and a PER of 58.0x on current-year earnings!!

Someone should ask George Quek point-blank: Why are you growing your company's business base so quickly and taking on so much debts - $180.5m gross and $119.8m net as at 31Mar14, before counting another $87.6m owed to suppliers and others under Trade & Other Payables, and another $58.1m owed under Other Liabilities (Current) - when the expected normal earnings from the business have gone to the landlords and god knows who else?

As business growth for growth sake only does not create real long-term shareholders' value, I believe a massive business revamp to cut unprofitable outlets and markets and even business units should be in order!

[Tiggerbee]

Company would have made a loss if not for the wage supplement scheme.

[dennislwm]

Q1 result just out…..
http://infopub.sgx.com/FileOpen/BTG-1Q14...eID=296109

Aren't the reported PBT of $3.68m (+1.4% YoY) and NP of $1.8m (+11.6% YoY) ridiculously low when compared against the Rev of $140.4m (+16.7% YoY)? When annualised, the imputed full-year NP of $7.2m would translate to a projected EPS of $0.0255 for this FY14. Against today's closing share price of $1.48 - which gives a market cap of $416.4m - I think Mr Market is very bold to peg BreadTalkat at 4.38x of latest (as at 31Mar14) NAV at $0.338/share, and a PER of 58.0x on current-year earnings!!

As Q1 FY13 net profit contributed 11.9% of the annual net profit, you should use the same proportion for FY14 to obtain the estimated full-year net profit, i.e. $1.8m / 0.119 = $15.17. The resulting FY14e PER is 27.0x, still much higher than its five year historical average.

Note: I am not vested.

[greengiraffe]

http://www.nextinsight.net/index.php/sto...2-3-yearsq

@ BreadTalk's AGM: "This Company's Going Places In The Next 2-3 Years"
Written by James Koh
Monday, 28 April 2014 12:09
jameskoh_may4.14James Koh (left) is an analyst with Maybank Kim Eng Research


Time & date: 9.30 am, 22 April 2014.
Venue: BreadTalk HQ, Tai Seng Street.



HAVING MET and heard from the entire board and management team, I came away even more convinced that this is a company (and stock) that is going places in the next 2-3 years.

The AGM was a long session with many different points of discussion.

Would just like to provide some important takeaways for now:

- Each of BreadTalk's business provides an important benefit to the group as a whole and makes it stronger. Bakeries = Cash Flow, Restaurants = Margins and Food Courts = Bargaining power against mall operators.

In Singapore, it is now by far the most dominant F&B player because of this and it is trying to build the same scale in its other markets.

- Remains confident of achieving 1,000 stores by 2014 and 2,000 by 2018. In the meantime, they set a very ambitious target of 8% net margin eventually. Our own forecast only expects them to hit 3% by 2016.

Higher margins will come from moderation of depreciation, continued cost rationalization, bigger scale and more leverage against malls/ suppliers.

breadtalk_shanghai
Guests at a BreadTalk event in Shanghai sample its offerings.
Photo: Company
- China will be the key area of focus for growth. Competition is numerous and sometimes intense, but BreadTalk is the no.1 brand bakery in the country. There is scope to increase stores in first tier cities and to broaden its presence in 2nd/3rd tier cities.

Management expects higher margins in China when they achieve a scale of 500 outlets vs 300 currently.

- By now, the company has more than 10 years of experience in China and has got to the stage where others value their expertise there, including Minor International which is keen to work with them.

- Property investments are strategic and carefully-thought out. Katong 112 is a good example of them achieving very good store fronts due to them being partners.

They expect to take up similar kind of spaces in the rest of their investments such as Chijmes, Triple One.

[Nick]

Q1 result just out…..
http://infopub.sgx.com/FileOpen/BTG-1Q14...eID=296109

Aren't the reported PBT of $3.68m (+1.4% YoY) and NP of $1.8m (+11.6% YoY) ridiculously low when compared against the Rev of $140.4m (+16.7% YoY)? When annualised, the imputed full-year NP of $7.2m would translate to a projected EPS of $0.0255 for this FY14. Against today's closing share price of $1.48 - which gives a market cap of $416.4m - I think Mr Market is very bold to peg BreadTalkat at 4.38x of latest (as at 31Mar14) NAV at $0.338/share, and a PER of 58.0x on current-year earnings!!

Someone should ask George Quek point-blank: Why are you growing your company's business base so quickly and taking on so much debts - $180.5m gross and $119.8m net as at 31Mar14, before counting another $87.6m owed to suppliers and others under Trade & Other Payables, and another $58.1m owed under Other Liabilities (Current) - when the expected normal earnings from the business have gone to the landlords and god knows who else?

As business growth for growth sake only does not create real long-term shareholders' value, I believe a massive business revamp to cut unprofitable outlets and markets and even business units should be in order!

Perhaps investors after seeing its numerous crowded stores perceives it to be a cash generating machine ! I made the same judgement but in reverse for Osim - empty store, empty coffers - how wrong I was.

(Not Vested)