Saturday, April 3, 2010

BCorp: Right time to list F&B unit

from the star business online
BCorp: Right time to list F&B unit( but I have sold almost all BJcorp last few days!)
PETALING JAYA: Diversified group Berjaya Corp Bhd (BCorp) believes the “timing is right” for its food and beverage (F&B) business to be listed on Bursa Malaysia and the company plans to list the business under the name of Berjaya Food Bhd (BFood) by the second half of the year.
In an e-mail to StarBizWeek, the management of BCorp said it was timely to raise the profile of its Kenny Rogers Roasters (BRoasters) restaurant business via its listing.
BRoasters is 100%-owned by Berjaya Group Bhd, a wholly-owned subsidiary of BCorp and the proposal is to inject BRoasters into BFood, the yet-to-be-listed entity.
The management said the Roasters restaurant business had potential and expected its shares to appreciate over time with its listing on the exchange.
The first BRoasters was established in Malaysia way back in November 1994.
On whether other franchise chains of BCorp would be injected into BFood, the managemnet said: “We may consider if the franchise chains are ready and profitable. At present, only BRoasters is ripe for listing.”
The management said BRoasters’ revenue had grown from about RM23mil in the financial year ended April 30, 2005 (FY05) to about RM52mil in FY09. After-tax profit had increased from a mere RM1.5mil in FY05 to RM7.9mil in FY09 (excluding exceptional items).
A local analyst said BCorp could be on an acquisition trail to boost its F&B business via BFood.
“The company is using BRoasters and its assets as a vehicle to list under a new name (BFood) as BRoasters had the profitable track record to qualify for main board listing,” he said.
The analyst said it was likely that other F&B chains within the group and possibly F&B chains not within the group could be a target of acquisition to enhance the value of BFood over time.
“The acquisition can be ‘organic’ or F&B chains outside the group,” he said, adding that acqusition would be the fastest way to grow, provided the F&B chains acquired were profitable.
Currently, BCorp owns 47 restaurants and 16 independent franchisees that are mostly F&B related, including Starbucks, Wendy’s, Papa John’s Pizza and Krispy Kreme Doughnuts.
In addition, BCorp also owns KRR International Corp, the owner of the KRR brand worldwide.
The diversified group also has other businesses, including gaming outlets, property develoment, trading, insurance, among others.

Thursday, April 1, 2010


from the EDGE
CIMB research rates Daibochi (target price: RM4.60) and Tomypak (target price: RM 4.66) as Outperforms -ability to pass on rising raw material costs to their customers -double digit pretax margins recorded for 4 straight quarters, trend should continue in 2010 -potential catalysts for both stocks 1) further margin expansion
2) contracts from major non-F&B companies
3) attractive dividend yields of 5-6%


Seremban Engineering Bhd (SEB) to expand capacity -to raise RM17m from its IPO and use half of it to fund group's capital expenditure, expected to be listed in the 2Q -1 SEB shares for every 15 Success Transformers shares -rights issue price RM0.85 Ex date: 12 April 2010

OSK Research says Oversea has a well established presence with over 30 years of culinary expertise, earning them recognition across the region.Targeting to open one new outlet in Ipoh and a café outlet in Klang Valley by 2011, Overseas plans sights to expanding abroad via a new licensing program to operate food service outlets under their brand name."For its listing on the ACE market, we think the offer price of RM0.23 at 7.8x FY10 EPS is fair given that its earnings is relatively smaller as compared to its peers which are trading in the range of 9-11 times price-to-earnings ratio," it said.

BERJAYA CORPORATION BHD [ ] (BCorp), whose share price hit an 11-year high of RM1.77 in intra-day trade on Tuesday, announced on Wednesday, a net loss of RM155.12 million on the back of RM1.66 billion revenue in its third quarter ended Jan 31, 2010 (3QFY10), was mainly due to non-cash dilution effects amounting to RM150.46 million when its interest in BERJAYA LAND BHD [ ] (BLand) was diluted from 56.44% to 53.25% upon maturity of the BLand ICULS on Dec 31, 2009.

Pos Malaysia has recommended a first and final dividend of 12.5 sen per ordinary share less tax. The dividend was subject to shareholders' approval at its forthcoming AGM.Shares of Pos Malaysia rose to a four-month high of RM2.34 in intra-day trade after the government announced that Khazanah Nasional would divest its 32% stake. On Tuesday, Pos Malaysia also jumped 19 sen (+9.2%), its largest gain since May 18 last year.


SUPERMAX CORPORATION BHD [ ] is expected to reap the immediate fruits from the US Healthcare Reform Bill as the glove maker is set to increase its export of medical examination gloves to the US market by 5% to 7% in FY10.
IOI Corporation Bhd may write back the impairment loss made in the financial year ended June 30, 2009 (FY09) on a joint-venture property project in Singapore towards the end of the current financial year since the value of property has risen in the island state
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