Results Update
For QE31/12/2021, BJFood's net profit rose by 234% q-o-q or 250% y-o-y to RM38.9 million while revenue rose 45% q-o-q or 57% y-o-y to RM273 million. BJFood explained its improved performance as fllows:The Group registered a revenue of RM272.75million and pre-tax profit of RM60.28 million in the current quarter ended 31 December 2021 as compared to a revenue of RM174.1 million and pre-tax profit of RM16.8 million reported in the previous year corresponding quarter. With the resumption of interstate and overseas travel starting from 11 October 2021, together with the calendar year end festive sales and Christmas season, the Group recorded a significant increase in revenue. The higher revenue was mainly due to higher same-store-sales growth particularly from Starbucks cafe outlets. The Group's pre-tax profit jumped 259% to RM60.28 million against RM16.79 million in the previous year corresponding quarter. The significant increase was in tandem with the higher revenue recorded in the current quarter as well as improved performance from the KRR operations in Malaysia.
Table: BJFood's last 8 quarterly results
Graph: BJFood's last 20 quarterly results
Valuation
BJFood (closed at RM2.40 yesterday) is now trading at a PE of 11 times (based on last 4 quarters' EPS of 21.33 sen). At this PER, BJFood is deemed vary attractive.
(Note: At 9:20 am, BJFood was trading RM3.01- a gain of 61 sen!! At this price, BJFood's PE is at 14 times. Notwithstanding the sharp rise, BJFood is still deemed fairly attractive.)
Technical Outlook
BJFood has broken above its trading range at RM2.30. This upside breakout, coupled with the previous long-term "irregular" downtrend line, RR breakout (see the weekly chart below), means that the stock could be finally free to trend higher.
Table: BJFood's last 8 quarterly results
Graph: BJFood's last 20 quarterly results
Valuation
BJFood (closed at RM2.40 yesterday) is now trading at a PE of 11 times (based on last 4 quarters' EPS of 21.33 sen). At this PER, BJFood is deemed vary attractive.
(Note: At 9:20 am, BJFood was trading RM3.01- a gain of 61 sen!! At this price, BJFood's PE is at 14 times. Notwithstanding the sharp rise, BJFood is still deemed fairly attractive.)
Technical Outlook
BJFood has broken above its trading range at RM2.30. This upside breakout, coupled with the previous long-term "irregular" downtrend line, RR breakout (see the weekly chart below), means that the stock could be finally free to trend higher.
Chart 1: BJFood's daily chart as at as at Feb 10, 2022 (Source: iSaham.my)
Chart 2: BJFood's weekly chart as at Feb 10, 2022 (Source: iSaham.my)
Conclusion
Based on improved financial performance, attractive valuation and bullish technical outlook, I revise BJFood's rating from a HOLD to a BUY.
Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.
Chart 2: BJFood's weekly chart as at Feb 10, 2022 (Source: iSaham.my)
Conclusion
Based on improved financial performance, attractive valuation and bullish technical outlook, I revise BJFood's rating from a HOLD to a BUY.
Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.
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