Question 1 The Covid-19 pandemic in the first half of 2020 has significantly changed the business...

Question 1
The Covid-19 pandemic in the first half of 2020 has significantly changed the business
landscape globally and locally. Businesses struggle to survive and share prices of companies
continue to tumble.
This situation, however, presents good investment opportunities for PropThrive Pte Ltd
(PropThrive). PropThrive is an investment holding company which invests in companies with
strong fundamentals and promising growth opportunities. Given the current depressed share
prices, the Chief Investment Officer (CIO) thinks that now is a good time to buy into shares of
such companies.
You have recently been recruited as a financial analyst of PropThrive. You report to Peter Tan,
one of the two investment strategists of PropThrive. In a recent meeting you attended with
Peter, both the CIO and the Chief Financial Officer (CFO) have identified Kitchen Culture
Holdings Ltd. (Kitchen Culture) as a promising investment target. Their rationale was that
despite the continuing losses experienced by Kitchen Culture, it has a strong reputation.
Moreover, the pandemic has kept the people around the world indoor more and this trend is
here to stay. People tend to cook more when they stay indoor and consequently, the demand
for good quality kitchen appliances will continue to rise.
The CFO and CIO have requested you and Peter Tan to examine and report to them on the
performance and financial position of Kitchen Culture. Your report should include a full
analysis and preliminary conclusion to be used by the CFO and CIO in their investment
decision.
Peter Tan has requested that you obtain the two most recent annual reports of Kitchen Culture
that include the financial statements for the financial periods ended 30 June 2019 (FY2019),
30 June 2018 (FY2018) and 30 June 2017 (FY2017) respectively, and any other relevant
materials of Kitchen Culture to start helping him to analyse and draft the report.
As this is the first time you are preparing such a report, Peter Tan has given you some advice
which you should heed. You are free to decide the relevant financial tools to use for your
analysis and assessment. As this is a formal report, the contents should be succinct and
professional. You should also use a proper format and limit your word count to no more than
1,000. All detailed computations, tables and charts should be in appendices to avoid distracting
readers from the main key points.
Peter also advised you that unless unavailable, all information, data and documents should be
obtained from reliable sources like the Singapore Exchange website. This is the url link to the
said website: https://www.sgx.com/securities/annual-reports-related-documents. Peter has also
furnished the SGInvestors.io website url for you to obtain the share prices of listed companies
in Singapore: https://sginvestors.io/sgx/stock-listing/alpha.
Required:
Peter specified that the report must include the following components:

(a) Analyse and discuss the profitability; liquidity and efficiency; and solvency of Kitchen
Culture.

(b) Appraise whether Kitchen Culture is a good investment option and state your
preliminary conclusion. Besides the quantitative data, you should also use qualitative
information to support your preliminary conclusion.

what exactly is qualitativea analysis?

Solutions

Expert Solution

Basically culture kitchen brings real authentic ethnic cuisines and the story behind the food to foodies through their culture kitchen DIY ehnic cooking kits.a thotough guidebook makes cooking foolproof with a primer on the chef , his or her country of origin and its secrets, instructions and accompanying photos.Thes are the underground cuisines most foodes have only heard about and now can learn how to make from grandmothers from around the world. Culture kitchen Master Cooks teach family recipes passed down for generations. Recipes you can't find in cookbooks or restaurants,only in cook these dishes for their families everyday.

Qualitative analysis is a term which is used to denote subjective judgment to analyze a company's value or prospects based on non-quantifiable information, such as management expertise, industry cycles,strength of research and development and labor relations.Its analysts represent a given reality in terms of a numerical value

Rahul Sunny answered 1 year ago

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