Investment Highlights We maintain our OVERWEIGHT call on the consumer sector as we expect consumer spending to recover postcontainment of the Covid-19 pandemic. Our forecasts are based on the assumption that the outbreak will be contained within 1H2020. We believe consumer companies will be largely affected by the movement control order (MCO) that was recently implemented by the government 18–31 March. We expect consumers to reduce discretionary spending during the outbreak. We believe the recovery in spending will come in 2H2020 although at a slow pace as we expect the aftereffects of Covid-19 will take some time to dissipate. We have updated the valuation PE multiples for companies under our coverage to reflect the latest average 1-year forward PE as shown in Exhibit 1. We believe the consumer company under our coverage that will be hardest hit by the Covid-19 pandemic and movement restriction is Berjaya Food (BFood) as its outlets can no longer serve dine-in customers for two weeks. As BFood’s Starbucks food items are considered discretionary products, we believe demand will be soft throughout the outbreak before picking back up post-containment in tandem with expected recovery in the economy. BFood’s 2HFY20’s (Jan–Jun 2020) financial performance is expected to be soft on the back of the Covid-19 outbreak and MCO. However, we believe 3QFY20 will be slightly buoyed by stronger sales during the New Year holiday as well as Chinese New Year festivities. 4QFY20 is typically weak on the back of lower sales during the fasting month. We believe the outbreak would improve Starbucks and KRR’s delivery service sales. However, the impact is expected to be minimal as only around 1% of Starbucks and 10% of KRR sales are through delivery. We also believe that the group will be hit by a weaker MYR against the USD as 50% of Starbucks’ cost of sales is denominated in USD. However, this will be mitigated by weaker commodity prices as shown in Exhibits 2–6. We have lowered our spend per outlet as well as store opening assumptions. We cut BFood’s earnings forecasts by 4–23% as shown in Exhibit 1. We downgrade our recommendation on BFood to a HOLD with FV of RM1.23. Only World Group will be negatively impacted for the duration of the Covid-19 pandemic as it is heavily reliant on the tourism industry. Also, Resorts World Genting will be shut down for two weeks due to the MCO. We have lowered our average spend assumptions for OWG’s Genting and Komtar operations. We cut OWG’s FY20F earnings forecasts to account for a wider loss of RM3.6mil (vs. RM0.8mil previously) in FY20F. We slash OWG’s FY21F’s net profit by 62%. We maintain our HOLD call on OWG with an FV of RM0.21. Padini will be negatively impacted as discretionary spending slows down and retail stores close for two weeks. The timing of Covid-19 is negative for Padini as 2H is typically the stronger half for the group. We believe the company’s Hari Raya festivities sale will be impacted by the outbreak. Padini is already seeing some delays for its 3Q2020 inventory due to shipment delays as its supply is mainly from China. We cut Padini’s FY20F to FY21F net profit by 1–27% to reflect poor consumer sentiment amidst the Covid-19 pandemic as well as its aftereffects. However, we upgrade our recommendation to a BUY for Padini with an FV of RM2.93 as its share price has tumbled 35% YTD. MyNews’ store sales is expected to be weak due to loss of patronage during the two-week movement restriction although it will be slightly offset by delivery orders. We expect a slowdown in sales for 2QFY21F and 3QFY21F before recovering in 4QFY21F onwards. We cut our earnings forecasts by around 7–13% to account for less store openings assumption as well as lower assumption of spend per outlet by 20% in FY20F (from RM1.1mil per outlet to RM890K). We maintain our BUY call on Mynews with an FV of RM1.16. We expect Power Root to be hit by the pandemic outbreak as consumer spending drops. We assume local sales to grow at a slower rate of 2% in FY21F and exports sales to grow at 5% (previously we expected a 10% growth) on the back of growth stemming mainly from expansion of new markets in non-GCC countries. However, we believe its performance will be slightly buoyed by cheaper raw material prices. We cut our earnings forecasts by 5–16%. We maintain our BUY call on Power Root with an FV of RM2.15. Guan Chong’s order for FY20F was already filled up to 75% of capacity. However, we believe the outbreak will affect chocolate sales negatively as demand from tourists drop. We also expect some disruptions in chocolate manufacturing due to the Covid-19 impact. We have lowered our combined ratio assumptions for FY20F and FY21F. We have cut our earnings forecasts by around 1–5%. We maintain our BUY call with an FV of RM3.22. We believe Leong Hup International (LHIB) and Nestle’s performances will remain stable. For LHIB, demand for poultry from fa
BJFOOD Shareholding Changes Date of change Shares Director/ Substantial Shareholder 13 May 2020 Acquired 300,000 Juara Sejati Sdn Bhd 13 May 2020 Acquired 300,000 Berjaya Group Berhad 13 May 2020 Acquired 300,000 Berjaya Corporation Berhad 13 May 2020 Acquired 300,000 Teras Mewah Sdn Bhd 13 May 2020 Acquired 300,000 Berjaya Land Berhad 13 May 2020 Acquired 300,000 Tan Sri Dato' Seri Vincent Tan Chee Yioun 12 May 2020 Acquired 500,000 Juara Sejati Sdn Bhd 12 May 2020 Acquired 500,000 Berjaya Group Berhad 12 May 2020 Acquired 500,000 Berjaya Corporation Berhad 12 May 2020 Acquired 500,000 Teras Mewah Sdn Bhd
BERJAYA CORPORATION BERHAD 13-May-2020 Acquired 300,000 0.000 View Detail BERJAYA GROUP BERHAD 13-May-2020 Acquired 300,000 0.000 View Detail BERJAYA LAND BERHAD 13-May-2020 Acquired 300,000 0.000 View Detail JUARA SEJATI SDN BHD 13-May-2020 Acquired 300,000 0.000 View Detail TAN SRI DATO' SERI VINCENT TAN CHEE YIOUN 13-May-2020 Acquired 300,000 0.000 View Detail TERAS MEWAH SDN BHD 13-May-2020 Acquired 300,000 0.000 View Detail BERJAYA CORPORATION BERHAD 12-May-2020 Acquired 500,000 0.000 View Detail BERJAYA GROUP BERHAD 12-May-2020 Acquired 500,000 0.000 View Detail BERJAYA LAND BERHAD 12-May-2020 Acquired 500,000 0.000 View Detail JUARA SEJATI SDN BHD 12-May-2020 Acquired 500,000 0.000 View Detail TAN SRI DATO' SERI VINCENT TAN CHEE YIOUN 12-May-2020 Acquired 500,000 0.000 View Detail TERAS MEWAH SDN BHD 12-May-2020 Acquired 500,000 0.000 View Detail BERJAYA CORPORATION BERHAD 08-May-2020 Acquired 200,000 0.000 View Detail BERJAYA GROUP BERHAD 08-May-2020 Acquired 200,000 0.000 View Detail BERJAYA LAND BERHAD 08-May-2020 Acquired 200,000 0.000 View Detail JUARA SEJATI SDN BHD 08-May-2020 Acquired 200,000 0.000 View Detail TAN SRI DATO' SERI VINCENT TAN CHEE YIOUN 08-May-2020 Acquired 200,000 0.000 View Detail TERAS MEWAH SDN BHD 08-May-2020 Acquired 200,000 0.000 View Detail BERJAYA CORPORATION BERHAD 05-May-2020 Acquired 466,600 0.000 View Detail BERJAYA GROUP BERHAD 05-May-2020 Acquired 466,600 0.000 View Detail BERJAYA LAND BERHAD 05-May-2020 Acquired 466,600 0.000 View Detail JUARA SEJATI SDN BHD 05-May-2020 Acquired 466,600 0.000 View Detail TAN SRI DATO' SERI VINCENT TAN CHEE YIOUN 05-May-2020 Acquired 466,600 0.000 View Detail TERAS MEWAH SDN BHD 05-May-2020 Acquired 466,600 0.000 View Detail BERJAYA CORPORATION BERHAD 04-May-2020 Acquired 553,400 0.000 View Detail
kenny roger malaysia should follow philippine kenny roger, self-service. but foods will be sent to the customers' table according to table number (tag). cut staff cost and more efficient, can offer cheaper food prices with self-service
BERJAYA CORPORATION BERHAD 03-Jun-2020 Acquired 86,200 0.000 View Detail BERJAYA GROUP BERHAD 03-Jun-2020 Acquired 86,200 0.000 View Detail TAN SRI DATO' SERI VINCENT TAN CHEE YIOUN 03-Jun-2020 Acquired 86,200 0.000 View Detail BERJAYA CORPORATION BERHAD 02-Jun-2020 Acquired 300,000 0.000 View Detail BERJAYA GROUP BERHAD 02-Jun-2020 Acquired 300,000 0.000 View Detail TAN SRI DATO' SERI VINCENT TAN CHEE YIOUN 02-Jun-2020 Acquired 300,000 0.000 View Detail TAN SRI DATO' SERI VINCENT TAN CHEE YIOUN 28-May-2020 Acquired 50,000 0.000 View Detail BERJAYA CORPORATION BERHAD 27-May-2020 Acquired 80,000 0.000 View Detail BERJAYA GROUP BERHAD 27-May-2020 Acquired 80,000 0.000 View Detail TAN SRI DATO' SERI VINCENT TAN CHEE YIOUN 27-May-2020 Acquired 80,000 0.000 View Detail TAN SRI DATO' SERI VINCENT TAN CHEE YIOUN 27-May-2020 Acquired 50,000 0.000 View Detail BERJAYA CORPORATION BERHAD 22-May-2020 Acquired 90,000 0.000 View Detail BERJAYA GROUP BERHAD 22-May-2020 Acquired 90,000 0.000 View Detail TAN SRI DATO' SERI VINCENT TAN CHEE YIOUN 22-May-2020 Acquired 90,000 0.000 View Detail TAN SRI DATO' SERI VINCENT TAN CHEE YIOUN 22-May-2020 Acquired 50,000 0.000 View Detail BERJAYA CORPORATION BERHAD 21-May-2020 Acquired 100,000 0.000 View Detail BERJAYA GROUP BERHAD 21-May-2020 Acquired 100,000 0.000 View Detail TAN SRI DATO' SERI VINCENT TAN CHEE YIOUN 21-May-2020 Acquired 100,000 0.000 View Detail TAN SRI DATO' SERI VINCENT TAN CHEE YIOUN 21-May-2020 Acquired 50,000 0.000 View Detail BERJAYA CORPORATION BERHAD 20-May-2020 Acquired 152,100 0.000 View Detail BERJAYA GROUP BERHAD 20-May-2020 Acquired 152,100 0.000 View Detail BERJAYA LAND BERHAD 20-May-2020 Acquired 152,100 0.000 View Detail JUARA SEJATI SDN BHD 20-May-2020 Acquired 152,100 0.000 View Detail TAN SRI DATO' SERI VINCENT TAN CHEE YIOUN 20-May-2020 Acquired 152,100 0.000 View Detail TERAS MEWAH SDN BHD 20-May-2020 Acquired 152,100 0.000
BERJAYA GROUP BERHAD Company [BJFOOD]: BERJAYA FOOD BHD Name BERJAYA GROUP BERHAD Nationality Malaysia Role Shareholder
ShareholdingShare TransactionsRelated Company Shareholding Direct (units) 154,686,220 Direct (%) 43.73% Indirect (units) 40,680,000 Indirect (%) 11.50% Total (units) 195,366,220 Total (%) 55.23% Date of Notice 03-Jun-2020
Shareholding - VT Direct (units) 16,800,000 Direct (%) 4.75% Indirect (units) 225,184,220 Indirect (%) 63.66% Total (units) 241,984,220 Total (%) 68.41% Date of Notice 03-Jun-2020
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) BERJAYA FOOD BERHAD
Particulars of substantial Securities Holder Name TAN SRI DATO' SERI VINCENT TAN CHEE YIOUN Nationality/Country of incorporation Malaysia Descriptions (Class) Ordinary Shares Details of changes No Date of change No of securities Type of Transaction Nature of Interest 1 04 Jun 2020 463,800 Acquired Deemed Interest Name of registered holder Berjaya Group Berhad Address of registered holder Level 12, Berjaya Times Square, No. 1, Jalan Imbi, 55100 Kuala Lumpur Description of "Others" Type of Transaction 2 05 Jun 2020 70,000 Acquired Deemed Interest Name of registered holder Berjaya Group Berhad Address of registered holder Level 12, Berjaya Times Square, No. 1, Jalan Imbi, 55100 Kuala Lumpur Description of "Others" Type of Transaction
Circumstances by reason of which change has occurred Deemed interested by virtue of his interests in Berjaya Corporation Berhad, the holding company of Berjaya Group Berhad. -Acquired via open market Nature of interest Deemed Interest Direct (units) 16,800,000 Direct (%) 4.75 Indirect/deemed interest (units) 225,718,020 Indirect/deemed interest (%) 63.813 Total no of securities after change 242,518,020 Date of notice 05 Jun 2020 Date notice received by Listed Issuer 09 Jun 2020
Remarks : Deemed Interests held through:- No. of Shares -------------------- 1) Berjaya Group Berhad 155,220,020 2) Country Farms Sdn Bhd 1,070,000 3) Juara Sejati Sdn Bhd 14,060,000 4) Berjaya Philippines Inc 3,200,000 5) Berjaya Land Berhad 15,250,000 6) Bukit Kiara Resort Berhad 540,000 7) Nural Enterprise Sdn Bhd 5,050,000 8) Staffield Country Resort Berhad 810,000 9) Berjaya Bright Sdn Bhd 13,690,000 10) Berjaya Retail Sdn Bhd 8,005,000 11) MOL.com Sdn Bhd 523,000 12) Lim Kim Hai Sales & Services Sdn Bhd 1,300,000 13) B & B Enterprise Sdn Bhd 1,400,000 14) U Telemedia Sdn Bhd 2,000,000 15) Convenience Shopping (Sabah) Sdn Bhd 2,900,000 16) Redtone International Berhad 700,000 ------------------- 225,718,020 ============
Announcement Info Company Name BERJAYA FOOD BERHAD Stock Name BJFOOD Date Announced 09 Jun 2020 Category Change in the Interest of Substantial Shareholder Pursuant to Section 138 of CA 2016 Reference Number CS2-08062020-00003
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) BERJAYA FOOD BERHAD
Particulars of substantial Securities Holder Name BERJAYA CORPORATION BERHAD Address Lot 13-01A, Level 13 (East Wing), Berjaya Times Square, No.1, Jalan Imbi, Kuala Lumpur 55100 Wilayah Persekutuan Malaysia. Company No. 200101019033 (554790-X) Nationality/Country of incorporation Malaysia Descriptions (Class) Ordinary Shares Details of changes No Date of change No of securities Type of Transaction Nature of Interest 1 04 Jun 2020 463,800 Acquired Deemed Interest Name of registered holder Berjaya Group Berhad Address of registered holder Level 12, Berjaya Times Square, No. 1, Jalan Imbi, 55100 Kuala Lumpur. Description of "Others" Type of Transaction 2 05 Jun 2020 70,000 Acquired Deemed Interest Name of registered holder Berjaya Group Berhad Address of registered holder Level 12, Berjaya Times Square, No. 1, Jalan Imbi, 55100 Kuala Lumpur. Description of "Others" Type of Transaction
Circumstances by reason of which change has occurred Deemed interested by virtue of its 100% equity interest in Berjaya Group Berhad. -Acquired via open market. Nature of interest Deemed Interest Direct (units) 0 Direct (%) 0 Indirect/deemed interest (units) 195,900,020 Indirect/deemed interest (%) 55.383 Total no of securities after change 195,900,020 Date of notice 05 Jun 2020 Date notice received by Listed Issuer 09 Jun 2020
Remarks : Deemed Interests held through:-
No. of Shares ---------------------- 1) Berjaya Group Berhad 155,220,020 2) Country Farms Sdn Bhd 1,070,000 3) Juara Sejati Sdn Bhd 14,060,000 4) Berjaya Philippines Inc 3,200,000 5) Berjaya Land Berhad 15,250,000 6) Bukit Kiara Resort Berhad 540,000 7) Nural Enterprise Sdn Bhd 5,050,000 8) Staffield Country Resort Berhad 810,000 9) Redtone International Berhad 700,000 ---------------- 195,900,020 ==========
Announcement Info Company Name BERJAYA FOOD BERHAD Stock Name BJFOOD Date Announced 09 Jun 2020 Category Change in the Interest of Substantial Shareholder Pursuant to Section 138 of CA 2016 Reference Number CS2-08062020-00002
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....
RainT
8,448 posts
Posted by RainT > 2020-03-18 11:31 | Report Abuse
lockdown
so less sales, profit will drop