KUALA LUMPUR (Sept 19): CIMB IB Research has maintained its “Hold” rating on Berjaya Food Bhd (BFood)at RM1.39 with a lower target price of RM1.44 (from RM1.74) and said BFood’s 1QFY19 core net profit of RM6.2 million was below house and market consensus expectations, mainly due to lower-than-expected KRR earnings.
In a note Sept 18, the research house said the year-on-year core net profit growth was largely due to the lower losses for its KRR operations as a result of the elimination of its key earnings drag in Indonesia.
“We cut our FY19-21F EPS by 16-18% to account for lower KRR revenue and higher operating assumptions for Starbucks and KRR.
“Our target price is lowered to RM1.44 and our Hold Call is maintained,”it said.