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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

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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

 

 

 

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Labels: BJFOOD

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Chart Stock Name Last Change Volume 
BJFOOD 1.48 0.00 (0.00%) 331,700 

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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


 

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