Summary:
- Strong 1H26 results momentum to filter through to FY27F, with expected higher dividend yield circa 5.8% FY27F
- Jumbo is leveraged to higher tourist arrivals, in particular PRC who recently have diverted outbound travel away from Japan with Singapore a key beneficiary
- Currently trading at attractive valuations of FY27F 12.4x PE, 0.6x PEG, 5.8% dividend yield and 2.8x EV/EBITDA. Initiate coverage on Jumbo Group with BUY recommendation and target price of $0.40 or potential 53% upside.
