Hot stock since IPO but ... is it still attractive at 40 cents? I doubt it. Growth prospects are not that hot as the business scalability is not exciting. FY15 profit -- no growth.
Open 1 restaurant at a time -- think about the rising rental cost and labour cost not just in Singapore but also China. Net profit margin about 10% not great generally speaking but v good for F&B.
Jumbo risen to 43.5 cents but agree that this sort of biz will eventually attract more & more competition. The barrier to entry is low, there are already so many restaurants selling chilli crabs and a few will emerge to pose stiff competition to Jumbo. Its 10% net margin can only go down in due course.
$78/kg !!! Jumbo charges that much for its crab dishes.
quote Maybank report: "Jumbo prices its signature crab dishes at a market-topping SGD78/kg.
Anecdotally, the market range is SGD45-80/kg. The lower-end prices can be
found in eating places such as non-air-conditioned coffee shops or industrial food
centres. Higher-end establishments such as JUMBO can charge more as they are
located in popular dining enclaves such as the East Coast Seafood Centre, Clarke
Quay or Dempsey Hill that also serve tourists."
