KUALA LUMPUR (May 7): Berjaya Food Bhd (BFood), the franchisee of Starbucks Coffee outlets in Malaysia and Brunei, is targeting to open another eight Starbucks outlets in the fourth quarter ending June 30, 2021 (4QFY21) under BFood’s planned expansion, RHB Investment Bank Bhd analysts said today, citing BFood’s management.

The RHB analysts wrote in a note today: "Although footfall at various outlets since the relaxation of MCO (movement control order) 2.0 restrictions has been encouraging, we gather from the management that the focus on Starbucks’ expansion will be on drive-through outlets (currently at around 50 plus outlets out of 329), which have been the best-performing segment since the start of the MCO last year.” 

According to BFood’s website, the company runs Starbucks outlets in Malaysia and Brunei via its 100%-owned subsidiary Berjaya Starbucks Coffee Company Sdn Bhd.

BFood said Berjaya Starbucks' first Starbucks outlet was opened here on Dec 17, 1998.

"Berjaya Starbucks introduced its first drive-through concept store in December 2009 in Johor Baru. As at June 30, 2019, there were a total of 46 drive-through concept stores across Malaysia. In 2012, it opened its first suburban store in Seri Manjung, Perak. In 2015, Berjaya Starbucks opened its first Reserve concept store to introduce premium and exceptional coffees to the Malaysian market.

"On Feb 16, 2014, Berjaya Starbucks opened its first store in Brunei Darussalam at the Mabohai Shopping Complex. The store features a traditional coffee bar known as a 'slow bar', which allows customers to savour their coffee using the 'pour over' brewing method. On Sept 7, 2014, Berjaya Starbucks opened its first drive-through concept store in Beribi. As at June 30, 2019, there were four Starbucks stores in Brunei,” BFood said.

RHB’s note today followed BFood’s announcement yesterday on the latter’s 3QFY21 and cumulative nine-month (9MFY21) financials.

Yesterday, BFood said its 3QFY21 net profit stood at RM11.61 million versus a net loss of RM1.39 million a year earlier, while 9MFY21 net profit was higher at RM33.1 million from RM11.24 million a year earlier.

Today, the RHB analysts said BFood’s 9MFY21 net profit was above expectations at 110% and 93% of RHB’s and the street full-year forecasts respectively.

"In FY22, earnings growth should be underpinned by its expansion plan, as well as the broad reopening of the economy, which should see BFood being a prime beneficiary of a steady return in footfall,” the RHB analysts said.

RHB raised its FY21-FY23 earnings forecasts for BFood by 30%, 26% and 15% respectively.

RHB, which maintained its "buy" call for BFood shares, also raised its target price (TP) for the stock to RM2.33 from RM1.77, the analysts said.

Meanwhile, Hong Leong Investment Bank Bhd (HLIB) analyst Syifaa’ Mahsuri Ismail said today HLIB had upgraded BFood shares to "buy" from "hold", with a higher TP of RM2.48 from RM2.10 previously.

"We raise our FY21/22/23 EPS (earnings per share) forecasts by 29%/18%/18% to account for higher sales volumes and better cost control,” Syifaa’ Mahsuri wrote in a note.

On Bursa Malaysia today, BFood’s share price had risen one sen or 0.52% to RM1.95 at 11.27am, which valued the group at about RM690.5 million.

BFood has 354.1 million issued shares, according to its latest quarterly financial report.