Monday, September 23, 2013
BJFood- a consumer stock with potential
For QE31/7/2013, BJFood's net profit increased increased by 5% q-o-q or 131% y-o-y to RM5.2 million while revenue increased by 3% q-o-q or 48% y-o-y to RM36.5 million. The increased net profit was due to higher revenue which was mainly brought about by the additional restaurants operating in the current quarter.However, the true extent of the performance was muted by lower same store sales as the Muslim fasting month fell in this quarter under review (that spanned from July 2013 to early August 2013).
Table: BJFood's last 8 quarterly results
Chart 1: BJFood's last 15 quarterly results
BJFood (closed at RM1.68 as at Sep 20, 2013) is now trading at a PE of 19.3 times (based on last 4 quarters' EPS of 8.7 sen). At this PE, BJFood is deemed fully valued.
BJFood is still in an uptrend line, with support at RM1.65 (see the daily chart, Chart 2). In addition, we can see that BJFood should have good support from the 40-week SMA line at RM1.60 (see the weekly chart, Chart 3).
Chart 2: BJFood's daily chart as at Sep 20, 2013 (Source: Quickcharts)
Chart 3: BJFood's weekly chart as at Sep 20, 2013 (Source: Quickcharts)
Based on improving financial performance and positive technical outlook, BJFood is still a good stock to hold for long-term investment. However, it is immediate upside is likely to be limited as its valuation is fairly demanding.
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, BJFood.