[%ivqy%]
Research by HLIB
Sell (Maintain) – TP RM0.30

“Still bleeding"

BFood’s continued bleeding with 3QFY24 LATAMI of -RM29.8m (2QFY24: - RM42.6m; 3QFY23: RM15.9m) which brought 9MFY24 sum to -RM53.3m (9MFY23: RM86.1m). Top-line was down by -24% QoQ; -48% YoY on the back of the Starbucks boycott that’s been ongoing since Oct 2023 due to Israel-Gaza conflict. With the tough business condition, the group has decided to take a pause on business expansion which resulted to no new stores opened for the quarter. We opine that situation will be challenging for BFood with the unfavourable forex and the hampering demand from the boycott. We cut our FY24 forecast to losses of -RM81.2m and our FY25/26 forecast by -58%/-53% respectively to account for the deviations above. After earnings adjustment and rolling forward our valuation year to FY25 (from FY24) our TP decreases to RM0.30 (from RM0.38) based on 16x PE multiple. Reiterate SELL.

Analyst:
Syifaa’ Mahsuri Ismail
[%xyvy%]

$KLSE-BJFOOD
Research by HLIB
Sell (Maintain) – TP RM0.30

“Still bleeding"

BFood’s continued bleeding with 3QFY24 LATAMI of -RM29.8m (2QFY24: - RM42.6m; 3QFY23: RM15.9m) which brought 9MFY24 sum to -RM53.3m (9MFY23: RM86.1m). Top-line was down by -24% QoQ; -48% YoY on the back of the Starbucks boycott that’s been ongoing since Oct 2023 due to Israel-Gaza conflict. With the tough business condition, the group has decided to take a pause on business expansion which resulted to no new stores opened for the quarter. We opine that situation will be challenging for BFood with the unfavourable forex and the hampering demand from the boycott. We cut our FY24 forecast to losses of -RM81.2m and our FY25/26 forecast by -58%/-53% respectively to account for the deviations above. After earnings adjustment and rolling forward our valuation year to FY25 (from FY24) our TP decreases to RM0.30 (from RM0.38) based on 16x PE multiple. Reiterate SELL.

Analyst:
Syifaa’ Mahsuri Ismail
syifaa@hlib.hongleong.com.my