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Quick Summary Boycott pressure remains a key overhang  on  Berjaya Food Bhd , despite recent operational improvements Losses are expected to persist for several years , according to  CIMB Securities Same-store sales improved , but competition and rising costs could weaken 2HFY2026 “Reduce” rating maintained  with a target price of  20 sen What CIMB Is Saying CIMB Securities warned that  ongoing local and nationwide boycotts  continue to cloud Berjaya Food’s outlook, even as the group posted  narrower quarterly losses . While  1HFY2026 results met expectations , the research house expects  a weaker 2HFY2026 , citing: Intensifying competition  in the F&B space Higher operating expenses , particularly from marketing and promotions needed to defend market share Key risk:  Any aggressive promotional push could  further strain margins . Financial Snapshot (2QFY2026) Net loss:   RM11.9m  (vs  RM14.6m  in 1...

1. US-China Tensions Impact Southeast Asia Trade Malaysia’s Trade Minister Zafrul Aziz highlighted short-term opportunities as companies move supply chains to Southeast Asia. Long-term concerns: Slower global growth, higher consumer costs, and sustained geopolitical tensions affecting trade patterns. 2. Malaysia Needs High-Growth Sectors to Boost Economy Economist Dr. Nungsari Ahmad Radhi emphasized targeting high-growth, high-risk sectors to improve economic sustainability and reduce income inequality. Focus on structural reforms in labor, land, and capital to drive growth and social equity. Stocks to Watch 1. Bumi Armada (ARMADA.MY) & MISC Bhd (MISC.MY) Merger Talks: Both companies are evaluating a merger of their offshore energy businesses, potentially forming a RM20 billion energy services entity . MISC Q3 Results: Net profit down 21% to RM338.9 million. Revenue fell 12% to RM2.96 billion , impacted by lower charter rates and operational costs. Declared 8 sen per share di...

Key Takeaway: Berjaya Food Bhd reported a net loss of RM33.68 million for its first quarter ended Sept 30, 2024, as the anti-Israel boycott continues to impact its Starbucks operations in Malaysia. Berjaya Food Bhd (BJFOOD) announced its fourth straight quarter of losses , citing the prolonged impact of the Middle East conflict and associated boycotts affecting consumer sentiment. The company, which manages the Starbucks coffee chain in Malaysia, saw its quarterly revenue plummet over 50% to RM124.19 million from RM278.53 million a year ago, with no dividend declared for the period. The group remains cautiously optimistic about gradual recovery and is focusing on strengthening its core businesses, which include Kenny Rogers Roasters (KRR) and Paris Baguette in Malaysia and the Philippines. Berjaya Food’s shares dropped 6.8% to 41 sen on Thursday, leaving its market value at RM798.53 million and marking a 30% decline this year .

1.  Sapura Resources Bhd extended the leave of absence for Managing Director Datuk Shahriman Shamsuddin for another month, marking a continuation of his garden leave, which began on Sept 11. 2.  HeiTech Padu Bhd faces possible legal action from Souqa Fintech Sdn Bhd following HeiTech’s aborted deal to acquire a 30% stake in the fintech company for RM16.17 million 3.  Guan Chong Bhd is negotiating to acquire a 25% stake in Transcao Côte d'Ivoire , a cocoa manufacturer, to expand its presence in the world's largest cocoa bean origin country. 4.  Berjaya Food Bhd signed a master franchise agreement to operate Paris Baguette stores in Brunei and Thailand , aiming to open stores by Q3 2025. 5.  Petron Malaysia announced an eight-week maintenance shutdown of its Port Dickson refinery for furnace repairs but assured no supply disruptions. 6.  Tropicana Corp Bhd sold 38.5 acres of land in Johor to Computility Technology for RM240 million, marking its sec...

  Berjaya Food Bhd (KL) announced on Wednesday that it has signed a master franchise agreement to exclusively operate Paris Baguette stores in Brunei and Thailand . The company plans to open multiple stores across both markets by quarter three of 2025 . Paris Baguette, the flagship brand of South Korean food company SPC Group , specializes in French-inspired bakery products . Berjaya Food’s expansion reflects its strategy to tap into the growing café culture in these regions and broaden its international footprint amid pressures on its key Starbucks franchise in Malaysia . This move follows Berjaya Food’s launch of Paris Baguette in the Philippines , with its second store opening in September 2024. The company already operates eight Paris Baguette stores in Malaysia and two in the Philippines , and has plans to expand into Singapore as well. "We are excited to extend Paris Baguette’s reach into Brunei and Thailand," said Datuk Sydney Quays , CEO of Berjaya Food. The com...

SELL CALL with unchanged target price (TP) of RM1.55 Comments As anticipated, revenue of BFood’s Starbucks Malaysia operations is growing steadily. However, Starbucks’ EBIT margin has been depressed due to the weakening of the MYR against the USD. This is due to BFood purchasing certain raw materials from Starbucks Corp (USA) such as coffee beans, frappuccino mix and syrup which are denominated in USD. These materials account for between 40-50% of Starbucks Malaysia’s COGS. Therefore, given the recent renewed MYR weakness to ~RM4.20/US$, Starbucks Malaysia’s margins will remain depressed. This effect is illustrated over the previous six quarters (Figure 1). In FY17, BFood has closed one unprofitable KRR Indonesia restaurant and plans to continue to close loss-making outlets. Further closures of will reduce BFood’s effective tax rate as currently losses overseas cannot be offset back home in Malaysia, resulting in an inflated effective tax rate. Ready to Drink (RTD) S...