Breadtalk

Breadtalk: Unrated note by Maybank-KE. House note that primacy Investment, a wholly-owned subsidiary of Minor International (MINT) in Thailand, surfaced as a shareholder in Jan and purchased an additional 2.58% last week at an average of $0.83 a share, reaffirming house suspicions that Minor may just be getting started. With BreadTalk’s premium reputation as a bread operator, and entrenched position in Asia, this could be the prized jewel which Minor has been waiting for. BreadTalk offers MINT an excellent portal to extend its cross-selling channels, as well as an opportunity to strengthen and add prominent brands to its growing overseas portfolio. It is a leading bakery chain, which has restaurants and cafes also figuring in its portfolio. Current valuations of BreadTalk are below peers with a forward consensus P/E of 15.6x against 16.5x. House believe BreadTalk deserves a premium valuation for its multi-country success in growing its bakery chain.