Soup Restaurant

Soup Restaurant: Revenues rose 6.1% to $35.3m, attributed to 3 additional new outlets which commenced operations in 2011. Group's FY12 profits increased 126% to $4.2m due to the gain from disposal of YES (Dian Xiao Er Chain) of $3.4m. Employee expenses increased 13% y/y to $12m. The Group remains cautious about the outlook and the overall business environment in which it operates in. Besides more intense competition among the F&B players, the industry is expected to face more manpower shortages and rising operating costs. Dividend comprising of a Special dividend of 0.8¢ and Final dividend of 0.35¢ proposed, bringing FY12 dividends to 1.5¢; indicative yield of 12.2%; taking dividends proposed and the current share price of $0.127, indicative dividend yield is 9.1%.