KUALA LUMPUR (Dec 10): Berjaya Food Bhd shares rose as much as 4%, albeit on thin trade, after the company reported a 37-fold jump in second quarter net profit from a year earlier.
Berjaya Food also plans to reward shareholders with an interim single-tier dividend of 2.5 sen a share for the second quarter ended October 31, 2014 (2QFY15).
At 10.16am, Berjaya Food shares rose as much as 11 sen to RM2.90 with 14,000 shares done. The stock was the ninth-largest gainer across Bursa Malaysia.
For comparison, Berjaya Food warrants climbed as much as six sen or 3% to RM2.10. The FBM KLCI added 11.78 points or 0.7%.
Yesterday, Berjaya Food reported that 2QFY15 net profit rose to RM163.6 million from RM4.46 million a year earlier. Revenue was higher at RM75.32 million versus RM33.72 million.
Cumulative 1HFY15 net profit climbed to RM169.6 million from RM9.68 million a year earlier. Analysts said Berjaya Food's 1HFY15 core net profit, which excluded extraordinary gains, came in below market forecast.
CIMB Investment Bank Bhd analyst Eing Kar Mei said Berjaya Food's core net profit accounted for 31% and 25% of CIMB's and consensus estimates respectively.
Eing said CIMB had cut its earnings forecast for Berjaya Food and lowered the target price for the stock to RM3.68. This compared to RM4.33 previously.