SGX:VL6

Stock Analysis Report

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Executive Summary

Koufu Group Limited, an investment holding company, manages and operates food courts and coffee shops in Singapore and Macau. More Details


Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Koufu Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VL6 is less volatile than 75% of SG stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: VL6's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-0.8%

VL6

0.2%

SG Hospitality

1.1%

SG Market


1 Year Return

-7.1%

VL6

-1.2%

SG Hospitality

-4.0%

SG Market

Return vs Industry: VL6 underperformed the SG Hospitality industry which returned -1.2% over the past year.

Return vs Market: VL6 underperformed the SG Market which returned -4% over the past year.


Shareholder returns

VL6IndustryMarket
7 Day-0.8%0.2%1.1%
30 Day-2.2%-1.1%1.9%
90 Day0%0.8%6.1%
1 Year-4.3%-7.1%1.2%-1.2%1.0%-4.0%
3 Yearn/a-19.5%-26.0%-7.1%-18.5%
5 Yearn/a13.8%-1.2%17.0%-4.4%

Long-Term Price Volatility Vs. Market

How volatile is Koufu Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Koufu Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VL6 (SGD0.66) is trading below our estimate of fair value (SGD2.17)

Significantly Below Fair Value: VL6 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VL6 is poor value based on its PE Ratio (36.8x) compared to the SG Hospitality industry average (22.5x).

PE vs Market: VL6 is poor value based on its PE Ratio (36.8x) compared to the SG market (14.4x).


Price to Earnings Growth Ratio

PEG Ratio: VL6 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: VL6 is overvalued based on its PB Ratio (3.6x) compared to the SG Hospitality industry average (0.7x).


Next Steps

Future Growth

How is Koufu Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

31.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VL6's forecast earnings growth (31.1% per year) is above the savings rate (2%).

Earnings vs Market: VL6's earnings (31.1% per year) are forecast to grow faster than the SG market (25.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VL6's revenue (10.3% per year) is forecast to grow faster than the SG market (9.1% per year).

High Growth Revenue: VL6's revenue (10.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VL6's Return on Equity is forecast to be high in 3 years time (22.7%)


Next Steps

Past Performance

How has Koufu Group performed over the past 5 years?

-8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VL6 has a large one-off loss of SGD3.0M impacting its December 31 2020 financial results.

Growing Profit Margin: VL6's current net profit margins (5.1%) are lower than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: VL6's earnings have declined by 8.3% per year over the past 5 years.

Accelerating Growth: VL6's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VL6 had negative earnings growth (-64.2%) over the past year, making it difficult to compare to the Hospitality industry average (-2.4%).


Return on Equity

High ROE: VL6's Return on Equity (9.5%) is considered low.


Next Steps

Financial Health

How is Koufu Group's financial position?


Financial Position Analysis

Short Term Liabilities: VL6's short term assets (SGD102.9M) do not cover its short term liabilities (SGD116.4M).

Long Term Liabilities: VL6's short term assets (SGD102.9M) do not cover its long term liabilities (SGD123.9M).


Debt to Equity History and Analysis

Debt Level: VL6's debt to equity ratio (13.5%) is considered satisfactory.

Reducing Debt: VL6's debt to equity ratio has reduced from 33.5% to 13.5% over the past 5 years.

Debt Coverage: VL6's debt is well covered by operating cash flow (532%).

Interest Coverage: VL6's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Koufu Group current dividend yield, its reliability and sustainability?

1.83%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: VL6's dividend (1.83%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (1.98%).

High Dividend: VL6's dividend (1.83%) is low compared to the top 25% of dividend payers in the SG market (4.79%).


Stability and Growth of Payments

Stable Dividend: VL6 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: VL6 has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.4%), VL6's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VL6's dividends in 3 years are forecast to be well covered by earnings (49.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Lim Pang (64 yo)

no data

Tenure

Mr. Lim Pang serves as an Executive Chairman and Chief Executive Officer of Koufu Group Limited and serves as its Director since November 15, 2017. Mr. Pang is responsible for the overall management and op...


Leadership Team

NamePositionTenureCompensationOwnership
Lim Pang
Executive Chairman & CEOno datano data0.027%
SGD 99.0k
Sher Lin Chua
Chief Financial Officer5.5yrsno datano data
Teck Chuan Choo
Chief Operating Officer2.92yrsno datano data
Lee Lian Liong
Head of Human Resource Development0.92yrno datano data
Hoon-Tien Ng
Executive Director3.33yrsno datano data
Lian Leck Ng
Head of Procurementno datano datano data
Michelle Ng
Head of Business Development0.92yrno datano data
Kuei Lian Siau
Company Secretary1.25yrsno datano data
Chia Hui Teo
Company Secretary1.25yrsno datano data

1.3yrs

Average Tenure

53yo

Average Age

Experienced Management: VL6's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Lim Pang
Executive Chairman & CEOno datano data0.027%
SGD 99.0k
Hoon-Tien Ng
Executive Director3.33yrsno datano data
Tai Meng Hoon
Independent Non-Executive Director2.75yrsno data0.018%
SGD 66.0k
Laiboon Yu
Lead Independent Director3.17yrsno data0.018%
SGD 66.0k
Huay Lim Tan
Independent Non-Executive Director2.75yrsno data0.018%
SGD 66.0k

3.0yrs

Average Tenure

63yo

Average Age

Experienced Board: VL6's board of directors are not considered experienced ( 3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Koufu Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Koufu Group Limited
  • Ticker: VL6
  • Exchange: SGX
  • Founded: 2002
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: S$366.047m
  • Shares outstanding: 554.62m
  • Website: https://www.koufu.com.sg

Number of Employees


Location

  • Koufu Group Limited
  • 18 Woodlands Terrace
  • Singapore
  • 738443
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VL6SGX (Singapore Exchange)YesOrdinary SharesSGSGDJul 2018

Biography

Koufu Group Limited, an investment holding company, manages and operates food courts and coffee shops in Singapore and Macau. The company operates in two segments, Outlet & Mall Management and Food and Bev...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/04 11:08
End of Day Share Price2021/03/04 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.