KUALA LUMPUR (Sept 18): CIMB IB Research has upgraded Berjaya Food Bhd ( BFood) to “Hold” at RM1.53 with a higher target price of RM1,67 (from RM1.38) and said BFood reported 1QFY4/18 core net profit of RM5.3 million, which was in line at 23% of house and 22% of market’s full-year forecasts.
In a note Sept 17, the research house said the potential disposal of its Kenny Rogers Roasters (KRR) Indonesia operations may lead to an earnings uplift of circa 10%/12% for FY18/19F.
“We make no changes to our earnings estimates but we roll over our valuation base year to CY19F and thus, our target price is lifted to RM1.67.
“We upgrade our call to a Hold. We would turn more positive on the stock if it is successful in disposing KRR Indonesian assets as it will boost future earnings,” it said.