Over the Christmas period, I noticed an uptick in REIT prices, which made me reconsider pouring more funds into Mapletree Pan Asia Commercial Trust and Link REIT. Instead, I’ve shifted my focus to the Kimly Group, known for its catchy "Flavours of Life" slogan. It’s quite interesting—despite witnessing a substantial drop from their peak price of S$0.436 per share in 2021, Kimly has been busy expanding their business. From FY2021 to FY2024, they increased their number of F&B outlets from 148 to 191. You can delve into the specifics by checking out their Retail Footprint section.
1. Retail Footprint
Kimly has definitely been on a roll with their expansion efforts.
2. Financial Outlook and Dividend Insights + EPS Thoughts
Delving into their financials, there’s quite a bit to discuss. Kimly Group’s balance sheet is notable for its robustness, particularly the impressive S$98.5 million cash reserve. It’s no secret that in the world of finance, cash reigns supreme. This significant cash reserve provides flexibility for immediate business expansion or, if necessary, the quick repayment of their S$17 million in short- and long-term bank loans during financial emergencies.
Kimly has strategically fortified their financial standing, offering a strong hedge against unexpected economic downturns, while opening doors for future growth initiatives. Their financial prudence suggests a promising outlook, both in terms of stability and potential dividends for shareholders.
In conclusion, Kimly Group’s strategic expansions and their solid financial footing present an intriguing investment opportunity. While the REITs market remains volatile, Kimly’s growth trajectory and strong balance sheet position them well for the future.
