[%NnSn%] 
Research by Maybank
Sell - TP RM0.30

"4QFY24: Challenges persists"

BFD’s operating challenges are likely to continue as long as geopolitical tension remains. Also, with strong competition from domestic retail coffee chain players, BStarbucks’ brand equity may have eroded over a prolonged period. We project for a net loss of MYR4m (previously profit) in FY25E. Our FY26E net profit is cut by 82% and we introduce FY27E. Due to uncertainty in earnings recovery, we switch to a book-based valuation methodology, deriving a lower TP of MYR0.30 (-5sen), using 1.3x CY25E P/BV peg (-1SD to mean; vs. 11x CY25E PER previously). SELL.

Analyst:
Jade Tam
[%QqKU%]

$KLSE-BJFOOD 
Research by Maybank
Sell - TP RM0.30

"4QFY24: Challenges persists"

BFD’s operating challenges are likely to continue as long as geopolitical tension remains. Also, with strong competition from domestic retail coffee chain players, BStarbucks’ brand equity may have eroded over a prolonged period. We project for a net loss of MYR4m (previously profit) in FY25E. Our FY26E net profit is cut by 82% and we introduce FY27E. Due to uncertainty in earnings recovery, we switch to a book-based valuation methodology, deriving a lower TP of MYR0.30 (-5sen), using 1.3x CY25E P/BV peg (-1SD to mean; vs. 11x CY25E PER previously). SELL.

Analyst:
Jade Tam
jade.tam@maybank-ib.com