KGI Research Singapore

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Yew Kee Group Inc. (YKGI SP/YK9.SI)

IPO Note: 10 May 2023

Well positioned in Singapore, with potential to scale overseas

  • Yew Kee Group (YKGI) is an F&B Company in Singapore that has an established track record of more than 30 years.
  • The group has a very diverse portfolio of F&B brands within the Singapore Market. Aside from that, the Group also retails food products online.

Company background

YKGI engages in 3 different business segments within the F&B industry, namely F&B operations, food court management, and franchising in Singapore.

  • F&B Operations: Operations of Food Outlets supported by a central kitchen. Able to achieve cost savings through economies of scale.
  • Food Court Management: Leasing of food courts and in turn sub-lease stalls to individual Food Court Tenants
  • Franchising and sub-franchising: The identification of brands, engaging in negotiations with the franchisor, and entry into a master franchise agreement.

FY22 financials review

The group’s revenue rose slightly to S$56.2mn in FY22, from S$56.1mn in FY21 and S$39.0mn in FY20. PBT margin and NPM fell YoY, amidst harsh macroeconomic environment of high-interest rate and high inflation rate environment.

Company Outlook

Diving deeper into the Singapore market. The group is open and constantly on the lookout for acquisition opportunities of companies that already have an established brand and market presence offering complementary food products but remain focused on streamlining the business of its current brands, becoming more established within the Singapore market, and slowly expanding their current brands overseas. A high focus is placed on finding the right location to open new outlets to drive revenue for the Group.

Expanding the business overseas. The group aims to expand its CHICHA San Chen into Macau as its initial focus and Yew Kee Duck Rice into other countries within Southeast Asia within the next 5 years. The company is already in talks with landlords from Macau for potential outlets of CHICHA San Chen to be established, leveraging on the Group’s Chief Operating Office market knowledge in Macau.


  • A global economic downturn
  • Higher interest & inflation rates
  • Supply Chain Disruption
  • Technological Disruption
  • Dependency on the Labour Market
  • Dependency on their Central Kitchen
  • Changing consumer habits
  • Increasing rental prices
  • Reputational Damage from Franchising
  • Franchise Business with CHICHA San Chen is largely dependent on the contract, which will end in 10 years from 2019

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