[%zxue%] 
Research by HLIB
Sell - TP RM0.20

"Still in red"

BFood’s chalked in 4QFY24 LATAMI -RM27.7m (3QFY24: -RM29.8m; 4QFY23: RM17.3m) which brought FY24’s sum to -RM81.0m (vs FY23: RM103.4m). The results matched our estimates but missed consensus expectations. Top-line was down by -6% QoQ; -52% YoY on the back of the Starbucks boycott that has been ongoing since Oct-23 due to Israel-Gaza war. 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. FY24 registered a total of 408 Starbucks stores with three stores permanently closed in the quarter. The group also decided to temporarily close 25 inactive stores. We opine that sales will take time normalise considering the still intense Israel-Gaza conflict that is unfortunately seeing no signs of abating. Reiterate SELL with lower TP of RM0.20 based on 16x PE of FY25 EPS.

Analyst:
Syifaa’ Mahsuri Ismail
[%Jbgj%]

$KLSE-BJFOOD 
Research by HLIB
Sell - TP RM0.20

"Still in red"

BFood’s chalked in 4QFY24 LATAMI -RM27.7m (3QFY24: -RM29.8m; 4QFY23: RM17.3m) which brought FY24’s sum to -RM81.0m (vs FY23: RM103.4m). The results matched our estimates but missed consensus expectations. Top-line was down by -6% QoQ; -52% YoY on the back of the Starbucks boycott that has been ongoing since Oct-23 due to Israel-Gaza war. 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. FY24 registered a total of 408 Starbucks stores with three stores permanently closed in the quarter. The group also decided to temporarily close 25 inactive stores. We opine that sales will take time normalise considering the still intense Israel-Gaza conflict that is unfortunately seeing no signs of abating. Reiterate SELL with lower TP of RM0.20 based on 16x PE of FY25 EPS.

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