For QE37/1/2015, BJFood's net profit dropped by 5% q-o-q but rose marginally by 2% y-o-y to RM6.1 million while revenue rose 3% q-o-q or more than 2-fold y-o-y to RM132 million.
The higher revenue and pre-tax profit was mainly due to the full effect of consolidating Berjaya Starbucks Coffee Company Sdn Bhd ("BStarbucks"), which became a subsidiary of the Group in the second quarter of the previous financial year.
Table: BJFood's last 8 quarterly results
Chart 1: BJFood's last 23 quarterly results on the left-hand side while on the right-hand side, the adjusted numbers (excluding the extraordinary gain of RM158.6 million recorded in QE31/10/2014)
Valuation
BJFood (closed at RM2.14 last Friday) is now trading at a PE of 25 times (based on last 4 quarters' EPS of 8.4 sen, excluding the extraordinary gain of RM158.6 million). At this PER, BJFood is deemed fully valued.
Technical Outlook
BJFood is still in an uptrend line (SS), which has accelerated to S1-S1. It has recently tested its accelerated uptrend line at RM2.10. If the financial performance can recover from weaker consumer spending, then the accelerated uptrend would set the stage for the next upleg for the stock.
Chart 2: BJFood's weekly chart as at Sept 11, 2015 (Source: ShareInvestor.com)
Conclusion
Based on 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 and its financial performance has been negatively impacted by poorer consumer spending.
Note:
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.
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