Jumbo 42R FY18 Report

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Jumbo group posted profit of $11 mil. Lower profit of $3,450,000 in FY18. (Down 23.8% from FY17)


Jumbo had sent their shareholders a package consist of Annual report, Calendar with discount coupons and Chinese New Year ang bao packet.

Jumbo Shareholders Report

Jumbo Restaurants

Jumbo has 12 outlets, 6 in Singapore with the latest addition in Ion Orchard, 4 in Shanghai, 1 in Beijing and 1 in Xi an. There are another 5 franchise outlets, 1 in Ho Chi Minh, 2 in Taipei, 1 in Fuzhou and lastly 1 in Bangkok.

Jumbo Outlets

Jumbo also own Singaporean culinary heritage dishes Ng Ah Sio Bak Kut Teh. There are 4 outlets in Singapore and 1 in Taipei.

https://www.ngahsio.com

Financial Highlight

Jumbo net revenue have climbed up steadily year after year. $97.6 mil in FY13 to $153 mil in FY18 around 67% increase. Fun fact, Jumbo sells more than 1.8 tonnes of crab each day. Assuming one crab is 1.5kg, Jumbo sold more than 1200 crabs per day.

YoY Revenue

Jumbo net profit $95 mil in FY18 an increase of 5.5% from FY17 $145 mil. The employee benefits have seen a significant increase of 13.7% to $47 mil. Averaging per employee receive a yearly salary of $39,586. This makes me wonder if Jumbo overpaying their staffs.

Profit for the year also drop 29.4% to $10 mil compared to FY17 $15 mil.

P&L FY18 and FY17

Conclusion

Jumbo is currently trading at high valuation price. P/E Ratio 22.8% and P/B 3.90. Jumbo IPO at $0.25 and i think a fair value to enter is around $0.35 or below. One good point is that they are debtless.

Author: The Financial Guy

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