(Stocks Discussion) SGX: Koufu Group Limited (SGX: VL6)?

Koufu recently released their quarterly results in November 2019.

So far the numbers are looking go and their expansion plans to Macau will bode well due to recent actions by China in wanting to make Macau a backup financial hub for hong kong. Most likely more people will visit Macau now.

Links: https://www.bloomberg.com/news/articles/2019-12...

You can check out my blog for a more detailed write up on Koufu: http://justbeingernest.blogspot.com/2019/12/why...

If you like watching videos, I have also put it up in my youtube channel: https://www.youtube.com/watch?v=HS0T_nRV3Io
I write cool stuff about personal finance and money-saving hacks here.

1) Revenue growth based on Q3: 6.2%

2) Profits dropping down from FY 2017

There are a lot of global MNCs that can grow more than 6.2% with a better business model.

I would personally pass :)

I seen the cases of Shack Shake, McDonald's, Dominos, HaiDiLao, etc.

They are growing so well because of their scalable franchise model and operating in huge markets.

I am not that optimistic for Koufu given its product is not highly differentiated.

Rather invest in the shopping centres that lease foodcourt space to koufu than koufu itself. F&B tend to have high fixed overhead costs that increases anually (salaries, rental etc), while variable expenses such as food ingredient fluctuates.