Neo Group: Neo Group is the ultimate holding
company of its subsidiaries, Neo Garden Catering, Orange Clove, Deli
Hub, Niwa Sushi, H-Cube and NKK Import & Export. Neo Group also operates a successful chain of 16 food retail outlets under its "Umisushi" brand offering Japanese
convenience food.
Select Catering:
Its business comprises three divisions:-
Institutional Catering
Food Catering
Food Retail
• Operate 4 restaurants as at 31 December 2006 in Singapore specialising in Thai cuisine, located at Bugis Village, Singapore Expo, Marina Square shopping mall and White Sands shopping mall.
• Operate 18 dedicated food stalls and 1 public cafeteria at Chevron House as at 31 December 2006
• Operate 2 foodcourts located in Singapore Changi Airport Terminal 2 and Singapore Expo
Breadtalk:
It operates its chain of retail outlets selling breads, buns, cakes and pastries through its principal subsidiary, BreadTalk Pte Ltd.
Breadtalk has 57 bakery outlets in Singapore, PRC and Thailand to complement its operations, it also operates a central kitchen at Kampong Ampat that prepares and distributes fillings for its breads and buns, and bakes cakes and pastries for distribution to its various retail outlets island-wide.
The Group also recently diversified into the restaurant business, opening the world-renowned Din Tai Fung restaurant which was rated by The New York Times as one of the world's Top 10 best restaurants in 1993.
Chasewood:
In addition to holding the franchise rights for T.G.I. Friday’s®, WATAMI Japanese Casual Restaurant and Bulgogi Brothers Korean BBQ Restaurant, we are also the operator for Italiannies, The Apartment, Malones Irish Restaurant & Bar, Teh Tarik Place, Baci Italian Café, Laundry, Republic, Paradise and Bedroom.
Soup Restaurant:
Soup Restaurant Group Limited owns and operates a chain of niche restaurants that serve traditional, homecooked dishes which originated from family recipes. Today, the Group has 8 outlets operating under the brand names of "Soup Restaurant" and "Kampong Days", that are located across Singapore. Sakae Group: Sakae owns and operates restaurants and kiosks under 9 brands -- Sakae Sushi, Sakae Teppanyaki, Sakae Pizza, Sakae@Campus, Hei Sushi, Sho-U, Uma Uma Men, Crepes & Cream and Nouvelle Events. Japan Foods: Japan Foods Holding Ltd is principally engaged in the operation of restaurants under various brands in Singapore and Malaysia and the franchising of the “Ajisen Ramen” and “Aji Tei” brands to sub-franchisees and franchisee in Malaysia and Indonesia.
Analysis:1) Comparing the few companies above from "Thomson Reuters", Neo Group is trading at 2.94x its book value, and trading at 8.56x PE ratio. From its book value, it doesn't seem attractive in anyway.
2) It is trading at 8.56x PE ratio, it is low as compared to Select Group and Japan Foods. They have established F&B chains, therefore trading at higher valuations. Neo Group started its "Umi Sushi" in the last 2 years. It currently has a chain of 16 stores under Umi Sushi. Intend to increase the number of Umisushi
food retail outlets in Singapore to 30 by 2016. 3) Management is committed to pay out at least 60% of profits as dividends for the next 3 years. 4) Neo Group plans to develop the newly acquired property at 30B Quality Road (area of
approximately 122,149.93 sq ft) into a multi-storey building and consolidate most of their central kitchens, offices, warehouses, logistics and storage facilities and other F&B operations in the same location. When fully operational, daily capacity is expected to cater to approximately 1,000 events or serve approximately 30,000 headcounts a day. This will bring in cost savings to its F&B operations by operating under one roof. It is able to handle 30,000 headcounts up from 15,000 headcounts. Summary: Neo Group has an established catering business. It is now growing its F&B retail outlets. Being a small player, we may be witnessing what Breadtalk is experiencing in its initial years. To reward shareholders, management is committed to pay out at least 60% of profits as dividends for the next 3 years Personally, i rate a value of 12x PE ratio or 45cts for Neo Group.
Select Catering:
Its business comprises three divisions:-
Institutional Catering
Food Catering
Food Retail
• Operate 4 restaurants as at 31 December 2006 in Singapore specialising in Thai cuisine, located at Bugis Village, Singapore Expo, Marina Square shopping mall and White Sands shopping mall.
• Operate 18 dedicated food stalls and 1 public cafeteria at Chevron House as at 31 December 2006
• Operate 2 foodcourts located in Singapore Changi Airport Terminal 2 and Singapore Expo
Breadtalk:
It operates its chain of retail outlets selling breads, buns, cakes and pastries through its principal subsidiary, BreadTalk Pte Ltd.
Breadtalk has 57 bakery outlets in Singapore, PRC and Thailand to complement its operations, it also operates a central kitchen at Kampong Ampat that prepares and distributes fillings for its breads and buns, and bakes cakes and pastries for distribution to its various retail outlets island-wide.
The Group also recently diversified into the restaurant business, opening the world-renowned Din Tai Fung restaurant which was rated by The New York Times as one of the world's Top 10 best restaurants in 1993.
Chasewood:
In addition to holding the franchise rights for T.G.I. Friday’s®, WATAMI Japanese Casual Restaurant and Bulgogi Brothers Korean BBQ Restaurant, we are also the operator for Italiannies, The Apartment, Malones Irish Restaurant & Bar, Teh Tarik Place, Baci Italian Café, Laundry, Republic, Paradise and Bedroom.
Soup Restaurant:
Soup Restaurant Group Limited owns and operates a chain of niche restaurants that serve traditional, homecooked dishes which originated from family recipes. Today, the Group has 8 outlets operating under the brand names of "Soup Restaurant" and "Kampong Days", that are located across Singapore. Sakae Group: Sakae owns and operates restaurants and kiosks under 9 brands -- Sakae Sushi, Sakae Teppanyaki, Sakae Pizza, Sakae@Campus, Hei Sushi, Sho-U, Uma Uma Men, Crepes & Cream and Nouvelle Events. Japan Foods: Japan Foods Holding Ltd is principally engaged in the operation of restaurants under various brands in Singapore and Malaysia and the franchising of the “Ajisen Ramen” and “Aji Tei” brands to sub-franchisees and franchisee in Malaysia and Indonesia.
Analysis:1) Comparing the few companies above from "Thomson Reuters", Neo Group is trading at 2.94x its book value, and trading at 8.56x PE ratio. From its book value, it doesn't seem attractive in anyway.2) It is trading at 8.56x PE ratio, it is low as compared to Select Group and Japan Foods. They have established F&B chains, therefore trading at higher valuations. Neo Group started its "Umi Sushi" in the last 2 years. It currently has a chain of 16 stores under Umi Sushi. Intend to increase the number of Umisushi
food retail outlets in Singapore to 30 by 2016. 3) Management is committed to pay out at least 60% of profits as dividends for the next 3 years. 4) Neo Group plans to develop the newly acquired property at 30B Quality Road (area of
approximately 122,149.93 sq ft) into a multi-storey building and consolidate most of their central kitchens, offices, warehouses, logistics and storage facilities and other F&B operations in the same location. When fully operational, daily capacity is expected to cater to approximately 1,000 events or serve approximately 30,000 headcounts a day. This will bring in cost savings to its F&B operations by operating under one roof. It is able to handle 30,000 headcounts up from 15,000 headcounts. Summary: Neo Group has an established catering business. It is now growing its F&B retail outlets. Being a small player, we may be witnessing what Breadtalk is experiencing in its initial years. To reward shareholders, management is committed to pay out at least 60% of profits as dividends for the next 3 years Personally, i rate a value of 12x PE ratio or 45cts for Neo Group.
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