Jumbo: Maybank-KE has an update out on Jumbo in which it noted channel checks which suggest a faster turnaround for its new China outlets. Raffles City Shanghai’s start up costs could be lower than expected and its outlet at IFC mall could break even sooner as it is expected to open in time for the Chinese New Year flow. Currently, Jumbo has 3 outlets in Shanghai and believes the market can easily support 10 outlets. Should this hold true, Jumbo’s China margins could be fatter than Singapore’s current contributions.
Back in Singapore, the house notes that Jumbo has tried to push for more business during the daytime with a new lunch menu. Currently, most of its business is at night. Maybank-KE maintains Buy with TP of $0.58, leaving its current forecasts unadjusted for now.
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