KUALA LUMPUR: CIMB Equities Research said Berjaya Food (B-Food) is a stock to watch in the coming months.
It said on Tuesday, April 5 that as Berjaya Corp is likely to use B-Food as its listed vehicle for F&B, there could be interesting M&A plays for the stock.
First in line could be Berjaya's 50% stake in the Starbucks operator in Malaysia. Next could be Papa John's pizza, Wendy's and the overseas operations of Kenny Rogers Roasters.
'Despite the 30% upsurge in B-Food's share price over the past two weeks, it continues to trade at a sizeable discount to our RM1.24 SOP estimate, which suggests 51% appreciation potential.
'Furthermore, 28% of its share price is backed by RM0.23 net cash/share. Any asset injection that could enhance its EPS in the near future would be viewed positively by investors and would bring the company one step closer to its 5-year target of RM1bn market cap,' it said.
It said on Tuesday, April 5 that as Berjaya Corp is likely to use B-Food as its listed vehicle for F&B, there could be interesting M&A plays for the stock.
First in line could be Berjaya's 50% stake in the Starbucks operator in Malaysia. Next could be Papa John's pizza, Wendy's and the overseas operations of Kenny Rogers Roasters.
'Despite the 30% upsurge in B-Food's share price over the past two weeks, it continues to trade at a sizeable discount to our RM1.24 SOP estimate, which suggests 51% appreciation potential.
'Furthermore, 28% of its share price is backed by RM0.23 net cash/share. Any asset injection that could enhance its EPS in the near future would be viewed positively by investors and would bring the company one step closer to its 5-year target of RM1bn market cap,' it said.
No comments:
Post a Comment