Friday, March 28, 2014

Neo Group

FYJan14 net profit more than doubled to $6.4m, as topline grew 25.6% to a record $52.4m, driven by robust growth in the food catering business (+27%). Food retail business also contributed with a growth of 15.6%, as net outlets grew to 23, compared to 19 outlets a year ago. To support future growth, the group has launched a new product range under the brand name “Best Catering” to cater to the mass market with Tingkat services and economical buffets. Neo will also build a new centralized kitchen that will increase its capacity from 10-15k guests/day to 15-20k guests/day. Final dividend of 1.51¢ per share brings full year payout to 2.67¢ (FY13: 1.5¢), implying yield of nearly 3%. Neo Group trades at 20.27x P/E.

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