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Actually I think tanglinboy may have a point here. They may be profitable now but how long can they sustain their edge over their competitors in this overcrowded space? As for expanding overseas, the food biz is slightly different from other types of businesses. It is not as simple as offering the same product or service to another group of consumers.
They would also have to take into account different tastes/cultures in other countries. What suceeds in Singapore may not succeed overseas.
As long as they reach a net operating margin of 12% , it is not important for me how strong the competition is.
Either the competition is not so strong then, or they extract themselves from the competition with their business modell.
I see the groth potential in an oversea expanding. It was allready suggested by the management.
best regards from germany
Financial ratios aside... what is their long term growth potential? The food business is so competitive and the big question is what makes Soup special?
@ TuaPekGong9413
Thanks for your answer.
From the fundamental view the stock of Soup Restaurant is cheap.
They have a price-earning ratio of 8-9, a net operating margin of 10%, cash position of 9 mio S$.
Do you think the results are fake?
According to the ipo-prospect Soup is looking forward to open restaurants in oversee like malaysia or indonesia. but also without going to open new restaurants in other countires the stock of soup is undervalued.
Maybe this is a German view, but I donīt see the risk of this invest at the moment.
Jupp77, do consider letting go if u can sell at a profit now...and take up other trades. if u wana hv a portfolio of f&b shares, chk out my post at *******Recommended stocks******btw, US mart juz crashed again...
f&b listed companies cant go far in sg unless they hv manufacturing bz too. Think abt it...how much can they generate per day,thus yr...compared to other industries? till now....wat hv they done since their ipo? expansion plans?nah.....look at apex pal....any rise? think they juz wanted to catch the tide when ipo was a craze then...get some $$ out of it...no harm......trymyluck,this kind of trying and thinking of wat if...IR...wat if...some HK chain....is really trying yr luck...wat if...nothing happens?better hope they give u discounts then if u eat there...no offences..
what exactly do you mean?
forgot this (not vested)... F&B biz is tough biz in singapore.
from my point of view soup restaurant is undervalued. a price-earning-ratio of 9 does not include the chance of expanding in other countires.
yes... in fact I like their white chicken and the outlets are always full. However, there's a limit to the no. of outlets they can open in Singapore i.e. upper limit on revenue, unless they venture overseas...
the delivered half-year results are great.
@winsontkl
"Think S'pore market is too small and too competitive..."
-> but is it not wondrous that soup has such a great net operating margin.
Did somebody of you ate there?
Think S'pore market is too small and too competitive...
One question we need to ask..... why did they go IPO? What are they going to use the money for?
not that im vested in this counter, but just wanted to give an alternate angle.
imagine what would happen 6 months from now if Soup Restaurant comes up
with announcement Las Vegas Marina Sands /Genting IR has signed up with Soup Restaurants
to operate their Food court
or some HK food chain comes over and buys up Soup restaurant.
thats the fun of the share market its a big elephant with all of us blind people looking at it from diff angles
is it really tt unique? i don't see any long term growth for the Soup Restaurant
Yes, I agree with sporegal that Restaurants are very competitive (and labour-intensive plus a lot of hard work!). Look at Thai Village.
There is someone who buy and someone profit, then someone hope to sell to someone else for some profit, stock prices don often always goes up forever and never come one, so the best is got profit take some and leave some for other.
I agree with winsontkl actually... from the business perspective, I don't see high growth or expansion potential for Soup restaurant in Singapore. The food industry is already super-competitive here. Unless they are highly successful expanding overseas?
Look at it from business prospective, what's the potential????
After drinking soup, u will b in deep shit