![](https://cdn.thestar.com.my/Themes/img/chart.png)
It said that the group was fundamentally well on track to achieve its FY19 earnings growth of 35% year-on-year.
“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.
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
2018-10-08 23:11