KUALA LUMPUR (May 12): Berjaya Food Bhd's (BFood) share price was on the rise in early trade on Thursday (May 12) after it more than doubled its net profit for the third quarter (3Q) ended March 31, 2022.
BFood recorded a net profit of RM31.58 million in 3Q from RM11.61 million in the same period last year, with higher revenue of RM246 million from RM181.73 million previously, due to higher same-store sales growth, particularly the Starbucks cafe outlets.
At 11.20am, BFood advanced 4.05% or 15 sen to RM3.85 with 580,100 shares changing hands.
In a note, RHB Investment Bank Bhd said the broader economic reopening should lead to foot traffic across BFood’s brands continuing the upward momentum, complemented by strong purchasing power and underpinned by income recovery and improving employment rates.
"Growth in the medium term should be driven by its expansion plans of 30-35 Starbucks outlets a year, and we believe that the brand’s already entrenched network suggests that the expansion will be into smaller towns and cities which could contribute to sustainable sales improvements moving forward," it said.
RHB Investment has maintained its "buy" call for BFood with a revised target price of RM4.80.
Meanwhile, CGS-CIMB expects BFood to see stronger sales growth trajectory on capturing the Raya festive sales, longer operating hours and higher store count in the next quarter.
“We continue to like BFood as a solid reopening play for the strong brand equity of Starbucks and its robust earnings growth profile," it said while maintaining its "add" call with a revised target price of RM5.50.