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    Breadtalk PPT (Chee Jia Lih)

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    Jia Lih
    BreadTalk purchased more investment properties from 2016 to 2017, increasing their non-current assets by 71.7%. This was due to acquiring new office spaces in Shanghai and other property investments. BreadTalk's profitability also increased over this period as return on equity rose from 7.81% to 14.38%, above industry standards. Dividend yield also increased significantly from 24% to 51%, attracting more investors by offering a high return on their investment. In conclusion, BreadTalk reinvested cash into properties and saw rising profits and dividends, making it an attractive investment opportunity.

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    Breadtalk PPT (Chee Jia Lih)

    Uploaded by

    Jia Lih
    28 views5 pages
    BreadTalk purchased more investment properties from 2016 to 2017, increasing their non-current assets by 71.7%. This was due to acquiring new office spaces in Shanghai and other property investments. BreadTalk's profitability also increased over this period as return on equity rose from 7.81% to 14.38%, above industry standards. Dividend yield also increased significantly from 24% to 51%, attracting more investors by offering a high return on their investment. In conclusion, BreadTalk reinvested cash into properties and saw rising profits and dividends, making it an attractive investment opportunity.

    Original Description:

    Interpretation of Breadtalk's financial statements

    Original Title

    20190306- Breadtalk PPT (Chee Jia Lih)

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    BreadTalk purchased more investment properties from 2016 to 2017, increasing their non-current assets by 71.7%. This was due to acquiring new office spaces in Shanghai and other property investments. BreadTalk's profitability also increased over this period as return on equity rose from 7.81% to 14.38%, above industry standards. Dividend yield also increased significantly from 24% to 51%, attracting more investors by offering a high return on their investment. In conclusion, BreadTalk reinvested cash into properties and saw rising profits and dividends, making it an attractive investment opportunity.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    28 views5 pages

    Breadtalk PPT (Chee Jia Lih)

    Uploaded by

    Jia Lih
    BreadTalk purchased more investment properties from 2016 to 2017, increasing their non-current assets by 71.7%. This was due to acquiring new office spaces in Shanghai and other property investments. BreadTalk's profitability also increased over this period as return on equity rose from 7.81% to 14.38%, above industry standards. Dividend yield also increased significantly from 24% to 51%, attracting more investors by offering a high return on their investment. In conclusion, BreadTalk reinvested cash into properties and saw rising profits and dividends, making it an attractive investment opportunity.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    You are on page 1of 5

    BreadTalk

    Interpretation of Financial
    Statements

    Name: Chee Jia Lih


    Student no.: 10661365
    Lecturer: Mr. Frederick Cabanes
    Presentation Date: 8th March 2019
    Horizontal Analysis: Balance Sheet
    2015 2016 2017 Change from Percent • N.C.A consist of higher % of investment properties by
    ($’000) ($’000) ($’000) 2016 to 2017 71.7% in 2017
    24,053 22,984 39,463 16,479 71.7% • Because Breadtalk has purchased, construct or develop
    new investment properties i.e. office space in Shanghai
    Investment Properties (Pg. 62, 66, 104, 148)
    • It also has 29% interest in Chijmes, an investment
    property held through an associate, Perennial (Chijmes)
    Pte Ltd
    • Caused the C.L ↑ by 18.9% - short-term loans & current-
    portion of long-term loans have significant ↑ about
    166.6% & 56.2%
    Investment Properties
    50000000
    • Generally, properties can’t be converted into cash quickly.
    39463000 Rather, the real value lies in its ability to productively
    40000000 serve the company
    30000000 24053000 • In conclusion, Breadtalk chose to invest that cash back
    20000000 into its business to enhance its future profit potential
    22984000
    10000000

    0
    2015 2016 2017
    Ratio Analysis: Profitability
    - Show how well a company can generate profits from its operations
    2015 2016 2017 Change from Industry • Increasing from 2015 to 2017
    2016 to 2017 Standard
    • Higher ratio in 2017 as compared to previous year and it
    6.57% 7.81% 14.38% 6.57% 13.52% was above the industry ratio

    Return on owners’ equity (Pg. 65 & 66) • High return on equity ratio indicated that Breadtalk has
    utilised its investors’ funds in favourable manner as it
    knows how to reinvest its earnings wisely, so as to
    increase productivity and profits
    • Breadtalk may satisfactory for investors to invest
    • Increase due to increase in net income compare to
    shareholder’s equity
    • Therefore, it’s a good sign for Breadtalk as ability to
    maintain a positive earnings trend and able for seeking
    𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡/𝐼𝑛𝑐𝑜𝑚𝑒 new investors
    𝑂𝑝𝑒𝑛𝑖𝑛𝑔 𝑆𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟𝑠 ′ 𝐸𝑞𝑢𝑖𝑡𝑦

    $21,848,000
    = 0.1438 or 14.38% (2017)
    $151,945,000
    Ratio Analysis: Market Prospects
    -To determine company’s potential future performance
    2015 2016 2017 Change from Industry • Increasing from 2015 to 2017
    2016 to 2017 Standard • Its ratios were below the industry standard
    13% 24% 51% 27% 94% • It means an investor would earn 51% on his/her
    investment in the form of dividends
    Dividend Yield (Pg. 69 & 135) • Usually, the old and well established companies are in
    better position to pay a higher % to the shareholders as
    compared to new ones
    • Breadtalk was paying a huge amount of dividend in 2017
    • Yearly market per share was constant but dividend
    increased over the years
    • Investors take into account while purchasing the shares of
    a company by looking at the DY
    • Breadtalk was enough to satisfy investors as they were
    𝐴𝑛𝑛𝑢𝑎𝑙 𝐶𝑎𝑠ℎ 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 𝑃𝑒𝑟 𝑆ℎ𝑎𝑟𝑒 getting high yield from dividend
    𝑀𝑎𝑟𝑘𝑒𝑡 𝑃𝑟𝑖𝑐𝑒 𝑃𝑒𝑟 𝑆ℎ𝑎𝑟𝑒
    • Hence, Breadtalk is a reliable and less risky company for
    investment
    $16,881,000/281,893,238
    = 0.51 or 51% (2017)
    $33,303,000/281,893,238
    References
    • Breadtalk’s Financial Reports of 2014, 2015, 2016 & 2017

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