Kitchen Equipment

Kitchen Equipment: CIMB initiates coverage on Singapore Kitchen Equipment with Hold Call and 17.3c target. Note that SKE is an established player in the commercial and industrial kitchen solution provider industry, serving notable customers from the F&B and hospitality segments. Post IPO, SKE will be using part of the proceeds to invest in new equipment and talent training to expand its current capacity in both the fabrication and maintenance segments. This places SKE in a favourable position to ride on the growth of the local F&B and hospitality segments following the recovery of the Singapore economy and the rising influx of tourists. SKE’s plan to expand into the ASEAN markets through joint ventures and strategic alliances is promising given the strong expected yoy growth from these countries. However, such an expansion plan comes with uncertainty as there are issues of licensing, foreign exchange controls and availability of partners which are not within the control of SKE.