Singapore’s Big Loser for This Week: Japan Foods Holding Ltd

During the week, Japan Foods Holding Ltd (SGX: 5OI) fell 6.1% to end on Friday at S$0.46. In contrast, the Straits Times Index (SGX: ^STI) declined 1.6% – the bigger-than-average drop experienced by Japan Foods makes it one of the big losers in the local share market this week.

Japan Foods, as its name suggests, is a food and beverage firm which has various Japanese-cuisine-themed restaurant brands under its umbrella in Singapore and other parts of Asia. Some of its well-known brands include Ajisen RamenMenya Musashi, and Osaka Ohsho. As of 30 June 2015, the F&B outfit had a total of 47 restaurants in Singapore. Beyond our shores, it also has a presence in Malaysia, Hong Kong, China, and Vietnam.

Late last week, the firm announced that its General Manager (Administration & Marketing), Koji Nishiyama, is stepping down for “personal and family reasons.” His last day of service was on 20 September 2015. He was in-charge of Japan Foods’ business planning, administration, purchasing, and marketing activities.

For the three months ended 30 June 2015, the company saw its revenue edge up 0.8% year-on-year to S$15.8 million while its net profit grew 28.8% to S$1.1 million.

Japan Foods’ slight revenue growth came from an increase in sales across different brands which offset a decline in revenue from Ajisen Ramen restaurants.  Meanwhile, the growth in profit was largely due to lesser administrative and operating expenses. You can read more about the company’s earnings results here.

Japan Foods is currently trading at 16 times its historical earnings and yields 4.3%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.