Kitchen Culture

Kitchen Culture: FY13 net profit turnaround of $1.3m (from $0.4m loss) on a 52% growth in revenue to $33m, from the recognition of 13 new projects and 26 ongoing ones under its residential segment, which contributed $26.2m (+91%) and offset by a decline in its distribution and retail segment of $6.8m (-15%) from a slow-down in Singapore and Malaysia. Overall gross profit margin decreased 5.4ppts to 43.5% from higher cost for certain residential projects. The kitchen equipment distributor is expected to commence operations in Jakarta by 1H14 and is exploring to establish a presence in Chengdu, China. Orderbook stood at $43.7m as at 31 Jan 14, expected to be fulfullied over the next 2-3 years. At $0.34, Kitchen Culture trades at 26.2x trailing P/E and 2.5x P/B.