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Author: ncl90   |   Latest post: Mon, 8 Oct 2018, 10:53 PM

 

RHB : Berjaya Food upgraded to Buy from Neutral with TP RM1.75

Author: ncl90   |  Publish date: Mon, 8 Oct 2018, 10:53 PM


 

 

 
KUALA LUMPUR: RHB Research said Berjaya Food 
 Bhd’s risk-reward dynamics has turned more favourable, as it believes its shares have more than priced-in the inconsistent earnings delivery and the downside risks from Kenny Rogers Roasters Malaysia (KRRM). 

It said that the group was fundamentally well on track to achieve its FY19 earnings growth of 35% year-on-year. 

 
“This comes backed by a robust Starbucks performance while we believe KRRM now offers limited downside risks thanks to the restructuring measures put in place. 

“Given its status as the largest listed F&B restaurant chain operator in Malaysia, with a wide network of stores and established brand equity, we view Berjaya Food as a good proxy to bank on the resilience of local consumer spending,” it said in a note.

 


Following the group’s Q1 results, which met its expectations, the research house maintained its FY19-20 earnings forecasts and target price of RM1.75.

It said risk-reward dynamics have turned more favourable as the stock now trades at just 20.3x P/E FY19 following a 16% retreat in share price following the disappointing Q4’FY18 results. 

“The valuation is below its 5-year mean which we think more than prices in the inconsistent earnings delivery and the downside risks from KRRM. 

“On a brighter note, Starbucks has continued to deliver robust growth, driven by outlet expansion and healthy same store sales growth which should keep Berjaya Food on track to achieve our forecasted FY19 earnings growth of 34.7%,” it added.


Read more at https://www.thestar.com.my/business/business-news/2018/09/19/berjaya-food-upgraded-to-buy-from-neutral/#hOLbEjkXtqIhFR.99

 

 

 

Labels: BJFOOD
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ncl90 Date 28-Sep-2018 to 05-Oct-2018

Number of Shares buy back 11,160,000

Currency Malaysian Ringgit (MYR)

Price (per shares) 1.380 - 1.500

Total Amount 16,208,776.41
Total Treasury Shares 16,880,000
08/10/2018 11:11 PM

Vietnamese furniture maker getting more order on China Tariff

Author: ncl90   |  Publish date: Thu, 27 Sep 2018, 9:03 PM


 

Image result for usa china trade war

No one wins from a trade war,” is a standard refrain among economists. Southeast Asian businesses are trying to prove that maxim wrong.

The region is capitalizing on a rush of new orders and production moves as firms reconsider their business in the U.S. and China amid a deepening trade war. About one-third of more than 430 American companies in China have or are considering moving production sites abroad amid the tensions, according to survey results released Sept. 13 by AmCham China and AmCham Shanghai. Southeast Asia was their top destination.

Vietnamese furniture producer Phu Tai Corp. is among those looking to cash in. The maker of home furnishings for Wal-Mart Stores Inc. outlets in the U.S. is planning for a 30 percent increase in its exports this year and in 2019, according to Deputy General Director Nguyen Sy Hoe. It’ll invest about $10 million to expand two factories at its base in Binh Dinh province and to upgrade production lines in two other factories in Dong Nai further south.

“We see this as a great chance to boost our exports to the U.S. as we’re getting more orders from that market,” Hoe said by phone Sept. 4. “Given the escalating trade war between China and the U.S., many American importers are switching to buy from Vietnam.”

Nguyen Thanh Phuong, chief executive officer of Kangaroo Group, a Vietnamese producer of home appliances, forecast a 10 percent increase in sales to the U.S. in the second half of 2018. His company has received orders from American clients who used to buy from Chinese makers, Phuong said in a Tuesday interview in Hanoi.

“The new U.S tariff is helping our products become more competitive against Chinese ones,” he said.

Malaysia furniture that might benefit in Vietnam Operation include Poh Huat Resources Holding Berhad and Latitude Tree Holdings Berhad.

Source: https://www.bloomberg.com/news/articles/2018-09-18/us-china-trade-tussle-is-creating-winners-in-southeast-asia

 

 

 

 
 

 

  4 people like this.
 
newbie911 But why poh huat is dropping?
27/09/2018 10:38 PM
ks555 I bet on Liihen!
27/09/2018 10:41 PM
Icon8888 I everything also bought some. But biggest pohuat
27/09/2018 11:02 PM
Force The Vietnam competitor increasing, mareial cost is a risk even coming qt based on history will good and usd better now.
28/09/2018 8:10 AM
Ocean2018 why only malaysia furniture player got factory in vietnam, china dont have?
28/09/2018 8:16 AM
Beza China has a lot of furniture factories in Vietnam till Poh Huat and Latitude Tree can't compete with them. You can read their QRs (Malaysian factories) mentioning that stiff competition with China factories.
28/09/2018 8:30 AM
value88 If u look at PoHuat's quarterly reports, Malaysian operation is doing fine but Vietnam operation's performance is deteriorating, mainly due to stiff competition from new China furniture manufacturing plant there, and higher operating cost such as increasing labour cost in Vietnam.

The trade war may benefit furniture manufacturers in Vietnam as a whole, but I wonder how much it can help PoHuat's deteriorating Vietnam operation..
28/09/2018 9:20 AM
value88 Anyway, the next 2 quarters are seasonal stronger quarters for PoHuat and strengthening of USD will boost profit. Thus, it is okay to hold and wait.
28/09/2018 9:21 AM
amiruul http://shantawood.com.my/
28/09/2018 10:05 AM
Icon8888 yes, correct. According to Latitude boss, China manufacturers flooded the Vietnamese market (competing for export clients) and drove down price in past quarter. Apparently pohuat suffered also

Posted by Beza > Sep 28, 2018 08:30 AM | Report Abuse

China has a lot of furniture factories in Vietnam till Poh Huat and Latitude Tree can't compete with them. You can read their QRs (Malaysian factories) mentioning that stiff competition with China factories.
28/09/2018 10:13 AM
Icon8888 but all these should be a thing of the past already. With the US trade war cutting off closed to USD20 bil furniture export from China, Vitetnam based manufacturers (be it China or Malaysian owned) now have more orders than they can digest. The depressed pricing should be gone already
28/09/2018 10:16 AM
albert787378 Icon8888 but all these should be a thing of the past already. With the US trade war cutting off closed to USD20 bil furniture export from China, Vietnam based manufacturers (be it China or Malaysian owned) now have more orders than they can digest. The depressed pricing should be gone already

Icon8888's comment is the most detailed and proper.expect furniture stocks to be darling stocks in late 2018.
29/09/2018 5:17 AM

Maintain BUY on V.S. Industry with TP RM1.87

Author: ncl90   |  Publish date: Mon, 10 Sep 2018, 8:37 PM


Image result for vs industry

Investment Highlights

  • We raise our FY18-20F net profit forecasts by 1-3% and upgrade our FV by 15% to RM1.87 (from RM1.62), as we now peg our valuation to 15x revised CY19F FD EPS of 12.5 sen (from 13x). The earnings upgrade is to reflect changes in orders from Keurig and other key customers. We maintain BUY on V.S. Industry.
  • We came away from V.S. Industry’s (VSI) 3Q analyst briefing with the following key takeaways:

1. Box-build orders to pick up moving forward: VSI has consolidated two of its assembly lines for an older model as box-build volume shrank, and is planning to phase out production of the model by endCY18. On a more positive note, mass production of a new lifestyle product for its key customer has begun in July2018 and the group has won an additional line for an existing floor care product with production expected to commence in Nov2018. VSI is bidding for one additional line from its key customer and has also managed to renegotiate terms with the key customer, which we believe should ease cost pressures and improve margins ahead.

2. Keurig’s revenue contribution to recover FY19 onwards: Recall that two Keurig models had been discontinued in February upon reaching the end of the product lifecycle. We expect earnings to improve as production of a replacement model has started in May, while three additional models are expected in FY19. Additionally, the coming quarters (4Q and 1Q) are seasonally stronger quarters for Keurig, thus we expect improved earnings contribution to VSI. We also view Keurig Green Mountain’s merger with Dr Pepper Snapple Group positively as it may boost Keurig orders in the longer term when synergies from the merger are realized.

3. Update on new factories: Its acquired 120K sq ft factory is under renovation and will house the key customer’s new line in Nov 2018 while its 180K sq ft new factory is scheduled for completion in October. Both facilities have a combined floor space of 20 lines. VSI is currently in talks to fill up the additional capacity at the new facilities.

  • Key risks to the group’s performance include: (i) continued drag from its China and Indonesia segments, which contributed 20% and 5% of VSI’s revenue for FY17 respectively; and (ii) changes in regulations which may impact operating costs.
  • We continue to like VSI due to: (i) its association with its key customer, which plans a slate of new product launches over the next few years; (ii) its ability to offer turnkey electronic manufacturing services (EMS) solutions being a verticallyintegrated player; and (iii) its handsome growth prospects from FY18F-FY20F, underpinned by sustainable capacity expansions and sturdy box-build orders from its key customer.

Source: AMInvest Research

Labels: VS
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Alex™ maintain unload at RM1.80
10/09/2018 9:39 PM
Armada An Quantum Leap Stock In 2019/2020 Goreng mother to attract more warrant holders to subscribe to mother ?
11/09/2018 7:37 PM
Armada An Quantum Leap Stock In 2019/2020 Nice !
Goreng kuat kuat and let it spill over
The whole ems eg. Skp & Eg yaa !
11/09/2018 7:40 PM


 

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