#Banbulldog on i3 forum. Bulldog should be banned from commenting. This bulldog manipulated counters such as Woodland, Bonia, Berjaya Asset, Berjaya Corporation and many micro caps stock. Really cunning fella
Talk is easy. How to fix it again at RM3. 80 for a Dollar? Unless the gov have enough of USD in your drawer else the Centre Bank will not be sacrificed from your mischief and mismanagement of the hutang negara. Now, exceeded RM4. 40,
The increment of the interest rate from the Fed Reserve/USA is seemed unavoidable. The interest rate is used as a tool to tackle the inflationary effects on the price and the money supply.
The borrowers are very sensitive towards the increment of lending rate from the banks. They would dispose the investment even in overseas and move the money back to US to reduce the loans outstanding which will reduce the cost of their borrowings. If the selling is at a larger scale over the various markets whether in Asia or Europe, the selling with cause the various bourses to suffer decline. The local currencies will also subject to depression when the proceeds from the disposal of equities/shares are being sold for the the demand of USD before repatriating the funds back to US.
So, the impacted areas are the decline of the indexes of the stock exchange and also the currencies as a result of the movement/increment of the interest rate in the US.
Berjaya Food Bhd, which operates the Starbucks and Kenny Roger's Roasters franchise in Malaysia, is set to announce a joint venture (JV) with international bakery operator Paris Baguette Singapore. The JV signing ceremony is scheduled to be held next Monday (June 20) at Berjaya Times Square Hotel, according to an invite sent out to the media. (TheEdge)
We maintain our BUY call on Berjaya Food (BFood) with a higher DCF-derived fair value (FV) (WACC: 8.7% and terminal growth rate: 1%) of RM5.05/share (from RM3.30/share previously), based on revised earnings. Our FV implies 14.5x PE, based on FY23F EPS. We are revising our earnings forecasts upwards by 34% for FY22F, 42% for FY23F and 51% for FY24F after imputing more bullish sales and margin assumptions. Starbucks Malaysia’s earnings, which account for 96% of BFood’s FY22F net profit, are expected to remain resilient, underpinned by high customer retention rates and effectiveness of the company’s strategy in generating consumer interest through switching outlet formats, leveraging third-party delivery services, and change in customers’ loyalty reward programme. Following the earnings revision, BFood is now our sector’s top pick. Leveraging on Starbucks’ strong brand equity, we believe BFood is relatively in a better position to compete in retaining consumers’ share of wallet under the current inflationary environment compared to its peers. In addition, Starbucks’ target audience of middle to high-income groups are likely to be more sticky given their bigger discretionary income buffer and more resilient spending habits to offset rising costs of living. To fight against rising raw material prices, BFood is taking a different approach compared to its peers. Instead of passing the additional costs to end-consumers, the company is actively improving its product portfolio by pushing higher-margin products and widening offerings. Anecdotally, Starbucks Malaysia appears to be running more aggressive marketing campaigns on promoting seasonal blended beverages which tend to have better margins. Capitalising on strong branding and customer loyalty, the brand also widened its merchandise offerings. The company is also taking active measures to diversify Kenny Rogers Roasters’ (KRR) offerings by reducing its heavy exposure to one single cost item i.e. chicken. The group’s new venture, Paris Baguette’s earnings contribution is expected to be immaterial in the near-term as it goes through a gestation period. Pending the completion of SPC Group’s distribution facility in Johor (estimated in June 2023), we believe the bakery chain stores will likely have to import its key raw materials and this may limit its near-term earnings upside potential. Nevertheless, we believe that Paris Baguette is a positive addition as it will help to extend BFood’s potential growth runway. The group’s strategy to progressively open 5 outlets/year, or a total of 50 stores in 10 years, will avoid potential over-investment while giving local consumers an opportunity to develop an appetite for the Paris Baguette brand. Other Key Points on Paris Baguette Joint Venture
The initial investment of RM30mil by the joint venture entity (BFood’s portion: RM15mil), will be utilised to open the first few outlets and covers the business’ operating expenses at the initial stage. The first store will be in Klang Valley and expected to commence operation by the end of 2022.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....