• News media reported that Berjaya Food is set to announce a joint venture (JV) with Paris Baguette Singapore, an international bakery operator. The signing ceremony will take place next week Monday, 20 June 2022.

• The company has yet to reveal any details on this potential JV, which should lead to Berjaya Food adding the Paris Baguette bakery store brand under its belt.

• We are positive on the development which could add a potential new income stream to the group. Berjaya Food would be able to leverage its expertise in managing food & beverage chain stores while riding on Paris Baguette’s strong and proven track record, currently the number one bakery chain store in South Korea.

• Paris Baguette is a global bakery chain owned by the SPC Group, a South Koreanbased company. The brand has over 3,400 stores in South Korea, and more than 440 outlets across the United States, China, France, Vietnam, Indonesia, Cambodia and Singapore.

• Recall that in April 2021, SPC Group announced that its top officials had discussions with Malaysian government officials regarding investments in Malaysia which include building production facilities in Malaysia.

• Pending further details from the management, we maintain our FY22F-24F earnings for now.

• Retain BUY recommendation on Berjaya Food with a DCF-derived fair value of RM3.30.

Source: AmInvest Research - 16 Jun 2022