Margins set to rebound; upgrade to Add ■ We upgrade BFood to Add from Reduce with a higher GGM-based TP of RM1.00 as earnings are set to improve on higher sales and margin recovery. ■ Key re-rating catalysts: i) robust store expansion to drive sales growth, ii) margin expansion as input costs ease from 2HFY24F, iii) rebound in tourism. ■ We switch to GGM model (prev. 12x CY24F P/E) to better reflect future profitability – 21% ROE, 9.5% COE, 4% long-term growth.
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Berjaya Corp Bhd (BCorp) has raised its stake in Berjaya Food Bhd (BFood), whose share price has fallen by a third year to date, to 57.43% from 55.31% after buying 37.25 million shares. BCorp paid RM26.59 million in total or 71.4 sen per share for the block of shares purchased. BFood, which operates the Starbucks coffee chain in Malaysia, closed at 68.5 sen on Monday, giving it a market capitalisation of RM1.33 billion. Following the latest transaction, BCorp now holds a total of about 1.008 billion shares, or a 57.43% stake, in BFood.
Monday, 6 Nov 2023 5:34PM BJFOOD BERJAYA GROUP BERHAD (77,300,000 units Disposed) 5:34PM BJFOOD BERJAYA CORPORATION BERHAD (80,300,000 units Transacted) 5:34PM BJFOOD JUARA SEJATI SDN BHD (77,300,000 units Disposed)
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