BERJAYA FOOD BERHAD
KLSE (MYR): BJFOOD (5196)
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Last Price
0.945
Today's Change
-0.02 (2.07%)
Day's Change
0.92 - 0.95
Trading Volume
8,514,900
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Happening
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Discussions
7 people like this. Showing 50 of 1,353 comments
Berjaya Food to set up five more Paris Baguette after maiden Pavilion KL opening
https://www.nst.com.my/business/2023/01/871444/berjaya-food-set-five-more-paris-baguette-after-maiden-pavilion-kl-opening
2 months ago
upcoming earnings is freaking strong....1 quarter make almost 100 million because of all the tourist....
better buy now, after announce, at least can up 20%
1 month ago
Berjaya Food (BFD MK)
Onwards and upwards
Maintain BUY with unchanged TP of MYR1.50
BFD is navigating through heavier cost pressures in FY23 with internal cost
efficiencies and product price adjustments at BStarbucks. With this, FY23
group operating margins may ease YoY but strong sales momentum, driven
by resilient demand, should keep BFD’s earnings on its positive trajectory
in the near-term. Our earnings estimates, TP of MYR1.50 (20x FY23E PER,
about mean) and BUY call are maintained.
Strong demand continues
Based on channel checks, BStarbucks demand in 2QFY23 has been tracking
internal expectations with the Dec quarter being a seasonally strong
earnings contributor driven by festive sales and high store footfall. At
present, c.75% of revenue comes from in-store sales while delivery and
drive-thru window sales account for c.12% and c.13% respectively.
Mitigating cost pressures with price adjustments
The group is facing additional cost pressures arising from higher raw
material costs (milk) and unfavourable USD/MYR currency exchange (c.50%
of raw materials are purchased in USD). Note that BFD’s milk costs are in
MYR. To mitigate this, BFD has raised product prices for all its beverage
items in BStarbucks by MYR1/item (effective Nov 2022) which translates
to a 5%-10% increase in permanent beverage product ASPs. On average,
beverage sales attributed to c.67% of BStarbucks revenue.
No changes to earnings estimates
BFD’s outlook is positive based on its resilient product demand and
unhindered ability to grow its store network amid weak consumer
sentiment. That said, we believe that its recent price adjustments will
only partially buffer cost increases from raw materials and the stronger
USD currency as BFD tries to strike a balance between maintaining
consumer affordability and defending group operating margins. Our model
has assumed for higher costs to weaken FY23 EBIT margins by 2ppts YoY.
Maybank Investment Bank
December 13, 2022
1 month ago
Core net profits is rm32.7 mil, lower by 7% compared to previous quarter. Net margin drop. But nevertheless still a good quarter.
1 month ago
But did you notice Starbuck coffee not as tasty and quality as during the first day it opened???
1 month ago
Hur.. But it earning is multiple time higher than its first day opened.
This shld be what investor looking for, correct?
1 month ago
February 13, 2023
Berjaya Food (BFD MK)
2QFY23: Dividend surprise
Maintain BUY with unchanged MYR1.50 TP
BFD’s 2QFY23 earnings were within our/consensus expectations. We
expect earnings to be stable in sequential quarters owing to the group’s
resilient product demand and new store expansion. Our earnings estimates
are unchanged but we lift FY23E-FY25E DPS estimates to 5sen p.a. (from
2sen p.a.), in-line with its higher payout in 2QFY23. Rolling forward
valuation to FY24E, our TP remains unchanged at MYR1.50 based on an
updated mean PER of 19x (vs. 20x previously).
Results in-line
2QFY23 core net profit of MYR33m (-21% YoY, -3% QoQ) brought 1HFY23
core net profit to MYR67m (+25% YoY). The latter accounted for 49% of
both our and consensus FY23E. Positively, a second interim DPS of 2sen
was declared, bringing 1HFY23 DPS to 2.5sen (1HFY22: 0.4sen), which was
above our FY23 DPS estimates of 2sen.
Revenue growth driven by new store openings
2QFY23 revenue grew 8% YoY predominantly due to the contribution from
new stores whilst BStarbucks SSSG remained flat YoY. EBIT however fell
12% YoY (EBIT margin: -4.7 ppts YoY) given higher costs from raw materials
(milk) and labour. On a QoQ basis, higher sales during the Christmas and
school holiday period led to a revenue growth of 4% QoQ. EBIT also grew
7% QoQ (EBIT margin: +0.5ppt) largely due to a MYR1 product price
adjustment made to its permanent beverage menu at the beginning of Nov
2022 and the strengthening of MYR/USD currency. The total count for
BStarbucks and Kenny Rogers Malaysia (KRR Msia) were 373 (+30 stores YoY,
+10 stores QoQ) and 70 (+1 store YoY, +2 stores QoQ) respectively.
Raised FY23E-FY25E DPS estimates
Our earnings estimates are maintained but we raise FY23E-FY25E DPS
estimates to 5sen p.a. (from 2sen p.a. previously). Sequential quarters are
expected to be stable with resilient sales demand boosted by intermittent
months of festive sales (CNY, Aidilfitri) in 3Q and 4QFY. Internal operating
costs are also being closely monitored in order to defend margins against
further operating cost increases in FY23. Nevertheless, our model has
imputed for FY23 EBIT margins to ease by 2 ppts YoY.
Maybank Investment Bank
1 month ago
has anyone been to the bakery they recently opened? good? or not malaysians' cup of tea?
1 month ago
...em. Their substantial shareholder disposed the shares consecutively. Anything bad news?
2 weeks ago
Substantial shareholder disposal thus far absorbed by market; holding 1.00 point of control (volume focus formed since Jan'23). If this does not hold, then 0.825 represents entire 2022 support zone, accumulation point. Starbucks still pretty busy, no issues etc.
2 weeks ago
Almost RM1B revenue FY22; preceding 2 qtr likely on track for RM1B mark this FY23. Q3'23 should cement this target achievable. Moreover full MCO pandemic recovery should already be in now. On the back of such revenue, expected they will try maintain ratio, so share price to increase and perhaps higher dividend amount. Now they declare div 6mo each, sweet if they go on to pay quarterly dividends, exceeding 50% payout ratio. Overall a good accumulate counter.
2 weeks ago
Take some time to reach the IB's targeted price given that the current market situation
1 week ago
The Board of Directors (“Board”) of Berjaya Food Berhad (“BFood”) wishes to announce that its 100%-owned subsidiary, Berjaya Food (International) Sdn Bhd (“BFI”) had on 15 March 2023 acquired a total of 11.87 million ordinary shares representing about 1.07% equity interest in 7-Eleven Malaysia Holdings Berhad (“SEM”) (“SEM Shares”) from True Ascend Sdn Bhd (“TASB”), a company controlled by Tan Sri Dato’ Seri Vincent Tan Chee Yioun (“TSVT”), via a direct business transaction for a total cash consideration of about RM21.96 million or at RM1.85 per SEM Share (“Acquisition”)
1 week ago
Why did Berjaya Food buy SEM shares from Vincent Tan?
The Board didn't explain. It only gave the lame excuse that "the Acquisition is in the best interest of the BFood Group"
For strategic partnership? So that 7 Eleven can sell more Starbucks coffee for BJFood and cheapen the brand?
Or does VT want to do a charity to BJFood minority shareholders, so that they can purchase SEM an at "undervalued" price of RM1.85 from VT?
1 week ago
During the glove stock mania in Dec 2020, Tropicana whose Chairman was none other than the Top Glove boss and VT's buddy, purchased Top Glove shares at RM6.97 per share.
https://www.theedgemarkets.com/article/tropicana-buys-rm7847m-worth-top-glove-shares
1 week ago
Agreed. If the acquisition of SEM shares can't be justified properly, It will lose fait in investors to keep holding the shares...
1 week ago
The Board's decision to acquire SEM shares from VT controlled company is unfortunate. It's unfortunate because I like BJFood for its strong franchise and seemingly capable management.
This acquisition amount was about RM22 million. Not a big sum. BJFood could definitely afford given its strong cashflow.
Main Market Listing Requirements 10.08 states that "... where any one of the percentage ratios of a related party transaction is 5% or more .... a listed issuer must -
...
(b) obtain its shareholder approval of the transaction in general meeting; and
(c) appoint an independent adviser..."
I noted the RM22m acquisition is just below 5% of BJFood's net asset at RM498m. No EGM is required to approve the transaction. Is this RM22 million purchase amount merely a coincidence? I don't know.
The fact that VT has been actively trading both BJFood and SEM shares recently is a further warning signal for me. This is warning regardless of whether SEM represents a good investment to BJFood at RM1.85.
If the Board truly believes that BJFood generates too much cash than it could invest profitably in its own business, why don't it return the cash as higher dividends to all shareholders? Let shareholders who believe in SEM to invest themselves. BJFood is not a fund manager. Don't act like one.
This incident reminds me of Genting Malaysia buying Empire Resorts from Lim Kok Thay's family in 2020. Regardless of the synergy and whatnot given by GENM Board then, the fact remains GENM has yet to recover from the valuation discount suffered until today. Genting companies' reputation have been tainted (which is not great to start with, I must say)
For this reason I disposed the share this morning despite liking the company. BJFood has been a very rewarding investment. The share price may recover and even go higher after today selloff. But that it no longer important. I prefer to invest in companies that won't spring me with such surprises.
1 week ago
Though I do not have any shares in BJFood, after I sold off near RM4.80 before bonus issues, it came as a surprise to me when BJfood announced to have purchased 1.07% in SEM. I have interests in SEM and I still think SEM is undervalued at current prices or RM1.85.
It is interesting to see so much of related party transactions between Berjaya Group of companies and SEM. First it was SEM to do aggressive share buyback and push the share price to RM2.40. Then when it reached 10% max share buyback, the share price collapsed back to RM1.60 level when I picked up again after selling some at RM2.30-2.40.
Then VT himself and BJLand / BJCorp bought directly into SEM and pushed the share price above RM2.00 again. I sold out after SEM announced disappointing results for Q42022.
Now BJFood bought 1.07% of SEM from VT who still holds an effective shareholding of 35%+. I really have no idea what game they are playing here.
Something may be brewing in SEM, not sure good or bad, but I am not betting on it.
1 week ago
Anyway the market is weak depressed by external factors like the collapse of SVB and troubles at Credit Suisse. It may be wise to sell first and increase cash holdings in such an uncertain market that may last for few more months.
1 week ago
@dragon328, yes, we talked about SEM before.
The challenge now is it's not sufficient to value these Berjaya companies based on business fundamentals alone. It has to be discounted against potential companies' actions that could go against, or perceived to go against minority shareholders' interests.
It may be OK for small investors like us, especially skillful ones like you, who could read the market and jump in and out at a moment of notice.
But funds that holds millions or tens of millions of shares could be trapped. The mere doubts of potential corporate governance issues will deter some fund managers from investing in such companies. The lack of support from big funds could in turn cap their valuation, no matter how rosy their businesses are. This is not friendly to long term shareholders. (Ironically the situation isn't too different from Daibochi, though I would argue Berjaya is a lot worse)
1 week ago
I fully agree on the importance of cash. The troubles at SVB and Credit Suisse reminds me of the early stage of GFC when Northen Rock, Countrywide and Bear Stearns failed. But never had I expected then that it could morph into a full blown crisis near the scale of the Great Depression.
I hope this time round we will not see another Lehman moment. However this is a game of confidence. Troubles tend to emerge from unexpected corners and panic can spread fast. Moreover, the geopolitics today is also more complex, US politics more dysfunctional, and Malaysian politics less stable.
1 week ago
Entered too early at 99 cents...Guess it will slide down further ba to 90 cents something
6 days ago
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2022-12-02 14:53