Highlights

Freedom88

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

 

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

Author:   |    Publish date:


 

 

 
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

 

 

 

Share this
Labels: BJFOOD

Related Stocks

Chart Stock Name Last Change Volume 
BJFOOD 1.45 -0.02 (1.36%) 23,000 

  Be the first to like this.
 
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 23:11


FEATURED EVENT
 

324  458  490  595 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 SAPNRG 0.315-0.01 
 IWCITY 0.63+0.04 
 AAX 0.26-0.03 
 VS 0.985-0.035 
 HSI-C3W 0.485+0.045 
 DAYANG 0.795+0.005 
 SAPNRG-WA 0.1050.00 
 BARAKAH 0.10-0.02 
 HSI-H4Y 0.135-0.03 
 DNEX 0.3250.00 

SPONSORED POSTS

1. Investment Bloggers Day 2019 MQ Trader Announcement!
2. Investment Bloggers Day - Get your sponsored ticket from MQ Trader today! MQ Trader Announcement!

TOP ARTICLES

1. Dayang Will Fly on Monday - Koon Yew Yin , Calvin Tan Comments (Please post comments here & contribute your ideas) THE INVESTMENT APPROACH OF CALVIN TAN
2. Dayang Will Fly on Monday - Koon Yew Yin Koon Yew Yin's Blog
3. Tony Fernandes: This will be best year for Airasia. New platform business will grow ancillary Good Articles to Share
4. [SELL] Carimin - Exposing KYY's Nonsense Real Talk
5. FPI - Earnings dragged by higher operating cost (HLIB maintain BUY rating with TP of RM2.22) FPI 2大因素前景看好台灣聯友今年再 尋突破
6. Investment Psychology is Indispensable - Koon Yew Yin Koon Yew Yin's Blog
7. QL RESOURCES VERSUS DIALOG GROUP (Compare Price Chart & 5 Years EPS) Calvin Tan Research THE INVESTMENT APPROACH OF CALVIN TAN
8. AAX - 2019 IS A STEP CLOSER TO THE BIG FAT MEAT? - YiStock AIRASIA X
Partners & Brokers