From Coffee Shops to Millions: Is Kimly Limited Still a Buy in 2026?

Hi Folks, welcome back to Investment Income For Life! Today, I am going back to take a look at Kimly Ltd since I sold off a significant stake on May 7, 2026 when it reached an all time high of S$0.430 per share. Interestingly, after 2.5 months, Kimly Group's share price has since dropped by 8% to the range of S$0.39 per share to S$0.395 per share and I have been slowly accumulating back the shares that I sold off previously. I will do a quick review here of its financials and fundamentals below.

1. Kimly Group Background and Key Events Over The Years

Kimly Limited is one of the largest traditional coffee shop operators in Singapore. It operates across three main business segments: Outlet Management (managing coffee shops, food courts, industrial canteens, and halal coffee shops under the Kedai Kopi brand), Food Retail (running various direct-operated food stalls, central kitchens, and restaurants), and Outlet Investment Business.

FY2021: Acquired a 75% stake in the Tenderfresh Group for S$54.0M to significantly expand its footprint into the halal F&B sector. Also acquired Tonkichi and Rive Gauche Patisserie businesses.

FY2022: Completed multiple strategic acquisitions of freehold and leasehold coffee shop properties (e.g., Clementi 380, Ang Mo Kio 347, Teck Whye 143) to secure permanent locations and expand rental income streams. Crossed the S$300Mil Revenue for the first time!

FY2023: Completed the disposal of the confectionery business (Rive Gauche Patisserie) in FY2023, recording a one-off net gain on disposal of S$2.5 million.

FY2024: Continued food stall network optimization—closing underperforming stalls while opening new strategic stalls in high-footfall heartland locations.

FY2025: Expanded its owned coffee shop portfolio through property acquisitions (e.g., Block 204 Serangoon Central, 110 Yishun Ring Road). NAV per share grew to 15.47 Singapore cents, with resilient margins despite inflationary headwinds.

FY2026: (H1 / YTD): Reported strong H1 FY2026 results with Net Profit up 10.6% YoY to S$16.4 million. Continued regular dividend payouts and announced board succession planning. Ongoing digitisation, central kitchen expansion, automation, and menu R&D to mitigate persistent labor, rental, and raw material inflationary pressures.

From above, you can see organic and inorganic growth strategies by its management over the last 5 years that shaped Kimly Group till today. 

2. Key Financial & Operational Metrics

As we can see, Kimly Group has demonstrated resilience in its revenue generation ever since its acquisition of Tenderfresh in FY2022. It has held steady in the S$310Mil-S$320Mil between FY2022 and FY2025. The resilience of heartland dining preference in Singapore has so far insulated Kimly from broader retail downswings.

Bank borrowings is now close to an impressive 1.10% leverage ratio (close to zero) following management's decision to pay off major banking loan facilities in FY2025 and FY2026. Kimly also has around S$65.1 Mil cash on hand for immediate deployment.

Based on expected 2 cents dividends for FY2026 and market price of S$0.395 per share as at 28 July 2026, the annualised dividend yield will be approximately 5.1%. Bear in mind that this is only about 75% of earnings payout with 25% kept in retained earnings.  

Parting Thoughts

On May 7, 2026, DBS Group Research has released a targeted price of S$0.52 per share based on a blend valuation techniques of 4% forward yield discounted cashflow and 18 times multiple of PE ratio benchmarked to existing F&B retail. With the price dropping back to below S$0.40 per share after the sudden rally from the release of the analyst report, I personally thought that it is a good time to accumulate after I sold off the bulk of them during the earlier sudden rally in May 2026.