Stock Name: BJFOOD
Company Name: BERJAYA FOOD BERHAD
AmResearch Sdn Bhd has re-affirmed its strong "buy" recommendation on Berjaya Food Bhd (BFood) following the company's acquisition of a 100 per cent equity stake in Singapore's Jollibean Foods Pte Ltd (JFPL).
The fair value has increased to RM1.55 per share against RM1.40 per share previously.
The research house said the acquisition was a positive move as it further strengthened the group's position as a regional food and beverage player.
"We see exciting growth plans mapped out, backed by its growing franchise value business model, and supportive operating dynamics.
"Management is also keen in expanding Sushi Deli in the medium-term, but the focus now is on Jollibean," said AmResearch in a note.
It said JFPL was forecast to generate at least S$0.75 million (RM1.87 million) in 2013 pre-tax earnings.
As such, BFood's earnings was expected to grow 97 per cent to RM22 million (inclusive Starbucks' nine months contribution).
"We retain our bullish conviction in BFood for its bright outlook, driven by a greater food and beverages portfolio of brands -- Kenny Rogers Roasters, Starbucks, Jollibean, Sushi Deli, Kopi Alley and Dango," it added. Bernama
Company Name: BERJAYA FOOD BERHAD
| Research House: AMMB | Price Call: BUY | Target Price: 1.55 |
AmResearch Sdn Bhd has re-affirmed its strong "buy" recommendation on Berjaya Food Bhd (BFood) following the company's acquisition of a 100 per cent equity stake in Singapore's Jollibean Foods Pte Ltd (JFPL).
The fair value has increased to RM1.55 per share against RM1.40 per share previously.
The research house said the acquisition was a positive move as it further strengthened the group's position as a regional food and beverage player.
"We see exciting growth plans mapped out, backed by its growing franchise value business model, and supportive operating dynamics.
"Management is also keen in expanding Sushi Deli in the medium-term, but the focus now is on Jollibean," said AmResearch in a note.
It said JFPL was forecast to generate at least S$0.75 million (RM1.87 million) in 2013 pre-tax earnings.
As such, BFood's earnings was expected to grow 97 per cent to RM22 million (inclusive Starbucks' nine months contribution).
"We retain our bullish conviction in BFood for its bright outlook, driven by a greater food and beverages portfolio of brands -- Kenny Rogers Roasters, Starbucks, Jollibean, Sushi Deli, Kopi Alley and Dango," it added. Bernama
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