The privatisation of Berjaya Food (BJFood) could be considered as a strategic move to streamline and rationalize the company’s operations. Here are a few potential reasons for such a decision:

1. Cost Efficiency: Privatising BJFood could allow the company to reduce costs related to regulatory compliance, such as public reporting and meeting shareholder requirements. Without the pressure to meet quarterly financial targets, the management can focus more on long-term strategies.


2. Restructuring and Expansion: It could enable BJFood to execute restructuring plans or make investments in areas such as expanding operations, improving efficiency, or integrating new business lines without the scrutiny of public markets.


3. Greater Flexibility: As a private entity, BJFood would have more flexibility in decision-making, allowing for faster adaptation to market trends, especially in the competitive food and beverage industry.


4. Undervaluation of Stock: If the management feels that BJFood’s stock is undervalued in the public market, they might consider privatisation as a way to capture the intrinsic value that is not being recognised by investors.


5. Simplification of Ownership Structure: If Berjaya Corporation (or any controlling entity) seeks to consolidate its holdings or simplify the corporate structure, privatising BJFood could be a logical step.



Overall, privatisation could align BJFood more closely with long-term strategies that are harder to pursue under the pressure of being a public company.

Vincent Tan and Berjaya Food: A Strategic Partnership
Vincent Tan, a prominent Malaysian businessman and the founder of Berjaya Corporation, has a significant stake in Berjaya Food. This strategic relationship is likely rooted in several factors:
* Diversification: Berjaya Food operates in the food and beverage industry, providing a diversified revenue stream for Berjaya Corporation. This helps to mitigate risks associated with fluctuations in other sectors of the business empire.
* Growth Potential: The food and beverage industry is a dynamic and growing sector, offering opportunities for expansion and increased profitability. Berjaya Food, with its strong brand presence and strategic partnerships, can capitalize on this growth potential.
* Synergies: Berjaya Food's operations may align with other businesses within the Berjaya Group, creating opportunities for synergies and cost efficiencies. For example, leveraging the group's distribution network or supply chain could benefit Berjaya Food.
* Brand Value: Berjaya Food's brands, such as Starbucks Malaysia and Kenny Rogers Roasters, contribute to the overall brand value of the Berjaya Group. A successful Berjaya Food strengthens the group's reputation and enhances its appeal to investors and customers.
Given these factors, it's understandable why Vincent Tan would be keen to see Berjaya Food succeed. A thriving Berjaya Food not only contributes to the financial health of the Berjaya Group but also reinforces its position as a leading player in the Malaysian business landscape.

Vincent Tan, being a key figure behind Berjaya Group, has a vested interest in ensuring the success of Berjaya Food (BJFood) for several reasons:

1. Reputation and Brand Image: Vincent Tan’s business empire, which includes diverse ventures such as retail, food and beverage, and property development, relies heavily on the public perception of his business acumen. BJFood’s failure could harm the overall reputation of Berjaya Group, which would ripple through his other business interests.


2. Financial Interests: BJFood represents a significant component of Berjaya Corporation's portfolio. The food and beverage industry, particularly with its Starbucks franchise in Malaysia, has been a major revenue generator for the group. A failure would negatively impact Berjaya Corporation’s financial standing, which would in turn affect other group companies and investments.


3. Starbucks Malaysia Stake: BJFood owns and operates Starbucks Malaysia, which is a flagship business under the Berjaya Group umbrella. Starbucks has performed well in the region, providing steady cash flow. Letting BJFood fail would mean jeopardizing this valuable franchise and its future potential.


4. Investor Confidence: As BJFood is publicly listed, its performance is closely watched by investors. A failure of BJFood would erode investor confidence in not just BJFood, but other Berjaya-linked entities, leading to a decline in stock prices across the group and potential capital flight.


5. Personal Legacy: Vincent Tan has built a vast business empire over decades, and maintaining the performance of BJFood contributes to the preservation of his personal legacy. Allowing any part of his group, especially a high-profile company like BJFood, to fail could be a blemish on his business track record.



In summary, Vincent Tan's commitment to BJFood’s success is driven by financial, reputational, and legacy-related factors.

Why a Strong Ringgit Benefits BJFood
A strong ringgit can provide several advantages to BJFood, a Malaysian food company:
1. Reduced Import Costs:
* Raw Materials: If BJFood imports raw materials like spices, oils, or other ingredients from foreign countries, a strong ringgit means they can purchase these items at a lower cost in Malaysian currency. This can significantly reduce their production costs.
* Equipment: Importing machinery or equipment for their operations also becomes more affordable with a strong ringgit.
2. Competitive Pricing:
* Domestic Market: BJFood can offer its products at more competitive prices in the domestic market compared to competitors who might be importing similar items. This can attract more customers and increase market share.
* Export Market: While exports might become slightly less profitable due to the stronger ringgit, BJFood can still maintain a competitive edge in certain export markets, especially those where price sensitivity is high.
3. Attracting Foreign Investment:
* Increased Confidence: A strong ringgit can signal economic stability and growth to foreign investors. This may increase their confidence in investing in BJFood or other Malaysian businesses.
* Access to Capital: Foreign investment can provide BJFood with additional capital to expand operations, develop new products, or enter new markets.
4. Reduced Debt Burden:
* Interest Payments: If BJFood has foreign currency-denominated debt, a strong ringgit can reduce the cost of servicing this debt as the interest payments will be lower when converted to Malaysian currency.

The outlook for Berjaya Food (BJFood) in Malaysia over the coming years appears positive, driven by several key factors:

1. Growing Consumer Demand:

Food and Beverage Sector Growth: The Malaysian food and beverage (F&B) sector continues to expand, with increasing demand for fast-casual dining, premium coffee, and healthier food options. BJFood, through Starbucks, Kenny Rogers Roasters, and Jollibean, is well-positioned to benefit from these trends.

Urbanization and Rising Income Levels: As urbanization and middle-class income levels grow in Malaysia, there will likely be increased spending on dining out, especially on premium and convenience-focused brands.


2. Strong Brand Portfolio:

Starbucks Leadership: BJFood's Starbucks franchise remains a dominant player in Malaysia's premium coffee market. The brand's continued expansion, coupled with innovations like drive-throughs and digital engagement, positions it well for sustained growth.

Kenny Rogers Roasters and Jollibean: Both brands cater to niche markets, with Kenny Rogers focusing on healthier, balanced meals and Jollibean targeting the plant-based and snack markets. While they are smaller compared to Starbucks, their focus on evolving consumer preferences can help them grow.


3. Expansion and Diversification:

New Store Openings: BJFood has consistently expanded its store network, particularly Starbucks outlets. Continued expansion into secondary cities and suburban areas will drive future revenue growth.

Menu Innovation and Localization: Adapting menu offerings to local tastes and preferences, while also tapping into trends like plant-based foods and sustainable practices, will allow BJFood to attract diverse customer segments.


4. Digital and Delivery Channels:

Growth of Digital Ordering: As online food delivery continues to grow in Malaysia, BJFood’s focus on digital ordering, partnerships with delivery platforms, and its Starbucks mobile app will help capture this market segment.

Loyalty Programs: BJFood’s loyalty programs, like the Starbucks Rewards, encourage repeat purchases and increase customer retention, contributing to revenue stability.


5. Economic Factors:

Economic Recovery: As Malaysia recovers from the impact of the COVID-19 pandemic, improving consumer confidence and higher discretionary spending will benefit the F&B sector.

Currency and Cost Pressures: While a stronger ringgit would reduce import costs (as discussed), the potential volatility in global markets, inflation, and higher raw material costs may affect margins. Efficient cost management will be key.


6. Sustainability and ESG Trends:

Focus on Sustainability: Consumer preferences are increasingly shifting towards environmentally friendly and socially responsible brands. BJFood’s initiatives, particularly through Starbucks, in reducing plastic waste and promoting sustainable sourcing, will resonate with environmentally-conscious consumers.


Risks to Consider:

Competition: The F&B space is highly competitive, with both local and international players vying for market share.

Economic Uncertainty: Prolonged inflation or other economic challenges could dampen consumer spending on discretionary items like dining out.


Long-Term Outlook:

BJFood’s strong brand portfolio, expansion strategy, focus on digital channels, and ability to adapt to consumer trends suggest that it is well-positioned for sustained growth in Malaysia. The company's long-term performance will also hinge on maintaining operational efficiency and leveraging its strong market presence.

A stronger ringgit benefits Berjaya Food (BJFood) in several ways:

1. Lower import costs: BJFood relies on imported ingredients and products, especially for brands like Starbucks, Kenny Rogers Roasters, and Jollibean. A stronger ringgit makes these imports cheaper, reducing their cost of goods sold.


2. Improved profit margins: Lower import costs translate to better profit margins as BJFood can save on operational costs without needing to increase prices, improving overall profitability.


3. Debt servicing: If BJFood has foreign currency-denominated debt, a stronger ringgit means it requires fewer ringgit to service these debts, reducing financial pressure.


4. Foreign expansion benefits: If BJFood earns revenue in foreign currencies, a stronger ringgit allows for more favorable conversion of foreign earnings back into local currency, though it also depends on the currency strength of their other markets.



In summary, a stronger ringgit helps reduce costs, enhance profit margins, and improve debt management for BJFood.

Vincent Tan's decision to buy back shares in Berjaya Food (BJFood) could be driven by several strategic reasons:

1. Confidence in the Company’s Future: A share buyback often signals that the investor, in this case, Vincent Tan, has strong confidence in the future performance and growth prospects of BJFood.


2. Undervaluation: Tan might believe that BJFood's shares are undervalued, and purchasing them now presents a good investment opportunity.


3. Increasing Ownership Stake: By buying back shares, Tan increases his ownership and control in BJFood, which could be part of a broader strategy for influencing company decisions.


4. Improving Market Sentiment: Share buybacks often boost investor confidence as it shows that key stakeholders are committed to the business. This could lead to a rise in the stock price.


5. Dividend Benefits: Holding more shares means a larger portion of future dividends, which could be an attractive prospect if BJFood continues to perform well.



The specific reasoning behind his buyback would likely involve a combination of these factors, especially in light of BJFood's performance and strategic direction.

If Benson, as the CEO of Oversea Enterprise Bhd, is not performing well, it could have several implications for the company:

1. Financial Performance: Poor performance by the CEO can lead to declining financial metrics, such as lower revenue, profit margins, and stock performance.


2. Strategic Direction: If the CEO is struggling, it might result in unclear or ineffective strategic direction, which can affect long-term business goals and operational efficiency.


3. Leadership and Morale: Ineffective leadership can impact employee morale and productivity. Staff may feel less motivated or uncertain about the company’s future.


4. Investor Confidence: Investors may lose confidence in the company’s leadership, leading to a decrease in stock price and difficulty in attracting new investment.


5. Operational Challenges: Day-to-day operations might suffer if the CEO is not effectively managing or directing key aspects of the business.


6. Potential for Change: If performance issues persist, the board of directors might consider changes in leadership or bring in additional support to address the challenges.



It’s essential for the company to assess the reasons behind the CEO’s performance issues and take appropriate actions to stabilize the situation, whether through leadership changes, strategic adjustments, or other measures.

Eddie Chai, a prominent figure in Oversea Enterprise Bhd, was a key player in the company's development and strategy. His passing could have several potential impacts on the company:

1. Leadership Void: Chai's death might create a leadership vacuum, affecting strategic decision-making and company direction, particularly if he was a central figure in operations and management.


2. Investor Confidence: The sudden loss of a key leader might impact investor confidence, especially if there is uncertainty about the company's future direction or succession plan.


3. Operational Disruptions: Depending on his role, Chai’s passing might lead to temporary disruptions in operations or decision-making processes until a successor is appointed or the leadership team stabilizes.


4. Succession Plan: If there is a well-defined succession plan in place, the company might experience a smoother transition, but if not, the process of finding and integrating a new leader could be challenging.


5. Market Perception: The market might react to news of his death, which could influence the company’s stock performance and public perception.


6. Strategic Changes: His absence might prompt a reevaluation of ongoing strategies and projects, potentially leading to changes in company priorities or direction.



The specific impact on Oversea Enterprise Bhd would depend on how the company manages this transition and the effectiveness of its succession planning.

The founders of a company like Oversea Enterprise Bhd might choose to exit and sell their majority shares for a variety of reasons, and it doesn't necessarily imply they are "useless." Some common motivations for founders to exit include:

1. Monetizing Investment: Founders often invest years of effort into building a business. Selling shares could be a way to realize profits after years of hard work, particularly if the business has grown significantly.


2. Strategic Exit: Founders may exit if they believe that new leadership or investors can bring in fresh strategies to scale the company or take it in a new direction.


3. Retirement or Lifestyle Changes: Some founders may wish to retire, reduce their involvement in the business, or pursue different interests or opportunities.


4. Market Conditions: Founders may sell shares when market conditions are favorable, such as during a strong period of stock performance or when investor demand is high.


5. Loss of Interest or New Ventures: After years of running a business, some founders may lose passion for the company or want to explore new ventures.


6. Pressure from Stakeholders: In some cases, there may be pressure from shareholders, board members, or financial issues that prompt founders to sell their shares.



If the sale was sudden or unanticipated, it might also be tied to internal issues within the company or the broader economic environment.

Focus on pos & bjfood as the recovery seems promising, etc :)😉😎

@
EVO118

Good123
Bit quiet from you today on a better than average day. RUOK? Hope you are fine.

10 hours ago

"Hidden hand gang" refers to groups manipulating stock prices in the Malaysian market for personal gain.

They engage in unethical practices like price manipulation, wash trading, insider trading, and circular trading.

Price Manipulation: Artificially inflating stock prices through coordinated actions, then selling at a profit.

Wash Trading: Buying and selling the same stock among connected parties to falsely inflate trading volumes.

Insider Trading: Trading on non-public information to gain unfair profits.

Syndicate Networks: Wealthy investors, brokers, or executives collaborate behind the scenes to influence stock movements.

Circular Trading: Trading stocks within a group to create the illusion of demand and drive up prices.

Spreading Rumors: Disseminating false information to generate hype and attract retail investors.

Front Running: Brokers trade ahead of large orders to benefit from future price movements.

Collusion with Management: Company insiders may release misleading information to manipulate stock prices.

Regulatory bodies like the Securities Commission Malaysia try to monitor and prevent such practices, but enforcement is challenging due to complexity.

Retail investors are often victims, left holding overvalued stocks when prices crash.

Protecting against manipulation involves conducting thorough research, avoiding hype-driven stocks, and diversifying portfolios.

The Securities Commission Malaysia (SC) has a regulatory mandate to protect investors, ensure fair market practices, and maintain confidence in the capital markets. However, the SC typically doesn't stop share consolidations because they are legal corporate actions that are often used by companies to address specific financial or operational issues. Here's why the SC might not intervene directly:

1. Share Consolidation is a Legitimate Financial Tool: Share consolidations are commonly used by companies to reduce the number of shares outstanding and increase the per-share price. This can be done to:

Avoid delisting from stock exchanges that have minimum price requirements.

Improve the perception of the stock by increasing the price per share.

Simplify the share structure of the company.


Since consolidations are part of normal corporate restructuring processes, the SC allows them as long as they comply with rules and regulations.


2. Corporate Autonomy: Publicly listed companies have the right to make corporate decisions (such as share consolidations) that they believe are in the best interest of their business and shareholders. The SC does not intervene in individual business decisions unless there is evidence of misconduct, fraud, or breach of regulations.


3. Transparency and Disclosure Requirements: The SC’s role is to ensure that companies provide full disclosure to investors regarding share consolidations. This includes ensuring that companies disclose the reasons for the consolidation, its potential impact, and any risks. Investors are then responsible for making informed decisions based on this information.


4. Protecting Market Integrity: The SC's primary focus is on preventing market manipulation, insider trading, and fraud. Share consolidations, by themselves, are not illegal or manipulative as long as they are conducted transparently and within regulatory guidelines. The SC monitors to ensure that these actions are not used to deceive investors or artificially inflate stock prices.


5. Investor Responsibility: Retail investors are expected to do their due diligence and understand the implications of share consolidations before making investment decisions. The SC, while promoting investor education, cannot prevent companies from taking actions that are legally allowed under corporate law. Investors are responsible for managing the risks associated with investing in stocks that undergo consolidations.


6. Addressing Market Abuse: If there are allegations that a company is abusing share consolidations to mislead investors, engage in market manipulation, or artificially prop up stock prices, the SC would investigate. However, as long as companies follow the rules, the SC does not intervene in routine corporate restructuring decisions like consolidations.



In summary, the Securities Commission Malaysia allows share consolidations because they are legitimate and legal corporate actions, and its role is to ensure transparency and compliance with regulations. It does not prevent such actions unless there is evidence of abuse or fraud. Investors must conduct thorough research and understand the risks associated with companies undergoing share consolidations.

Retail investors can incur huge losses and feel trapped after a share consolidation (also known as a reverse stock split) due to several reasons:

1. Perceived Loss of Value: In a share consolidation, the number of shares a shareholder holds decreases, while the share price increases proportionally (e.g., 10 shares at RM1 might become 1 share at RM10 after a 10-to-1 consolidation). Although the total value of shares theoretically remains the same, the reduction in the number of shares may create a psychological effect, making investors feel as though they have lost value.


2. Stock Price Decline Post-Consolidation: After a consolidation, stock prices often fall, either due to market dynamics or investor sentiment. Some investors may view the consolidation as a sign of financial trouble, leading to selling pressure. If the price drops significantly after consolidation, retail investors who bought shares at a higher price can be trapped and see substantial losses.


3. Liquidity Issues: Share consolidations can reduce the overall liquidity of a stock. With fewer shares in circulation, it may become harder for investors to buy or sell at favorable prices, especially for small or mid-cap companies. Retail investors might find it difficult to exit their positions without incurring a loss due to a lack of buyers.


4. Lower Dividend Yield: If a company pays dividends, the yield may be affected by consolidation. For instance, if dividends don't increase proportionally with the consolidation, the effective dividend yield for investors could be reduced, making the stock less attractive to income-seeking investors.


5. Negative Sentiment and Market Perception: Share consolidations are often seen as a last-resort measure by companies facing financial difficulties or trying to avoid being delisted from a stock exchange. This negative sentiment can lead to additional selling pressure, driving down the stock price and exacerbating losses for investors.


6. Dilution Risk: In some cases, a share consolidation is followed by a capital raising or issuance of new shares, diluting the value of existing shares. This can further reduce the stock price and hurt investors who are already facing losses from the consolidation itself.


7. Investor Misunderstanding: Retail investors may not fully understand how share consolidations work and might misinterpret it as a sign of recovery, buying into the stock at inflated post-consolidation prices, only to experience losses when the stock declines.



In summary, retail investors often get trapped in high prices post-consolidation because the stock may decline further, making it difficult for them to sell without incurring large losses, especially if they bought the stock before or during the consolidation at higher prices.

Eddie dah mati, masih sunyi, how?

If Eddie Chai, a major shareholder of Oversea Enterprise, has passed away, several outcomes could follow, depending on the structure of his estate and his involvement in the company:

1. Estate Handling of Shares: Eddie Chai's shares would typically pass to his estate or designated heirs. If he had a will, the shares may be transferred according to his instructions. His heirs could choose to either maintain the stake or sell it.


2. Potential Sale of Shares: If the heirs are not interested in maintaining his position in Oversea Enterprise, they might decide to sell the shares. This could lead to a new major shareholder emerging, potentially influencing the company's future direction. If the shares are sold in a bulk transaction, it could attract institutional investors or other prominent figures.


3. Stock Market Reaction: The market may react to the news, depending on how involved Eddie Chai was in the company's management and strategy. If he was actively involved in decision-making, there might be uncertainty or speculation about the company's future, possibly causing stock price volatility.


4. Management and Strategic Shifts: If Eddie Chai played an active role in the company’s decision-making, his death could lead to changes in its management or strategic direction. The company might need to appoint new leadership or alter its growth plans, depending on how reliant it was on his influence and resources.


5. Corporate Succession Planning: If Eddie Chai's stake was significant, the board of Oversea Enterprise might need to reassess its succession planning. They may look for a new investor or strategic partner to fill the void, ensuring the company's long-term stability.


6. Regulatory and Legal Aspects: Depending on the size of Eddie Chai's stake, any transfer or sale of shares could be subject to regulatory approval, particularly if it leads to a significant change in ownership or control of Oversea Enterprise.



The company might also release a public statement on the situation, outlining how it plans to move forward without one of its key shareholders.

The same factors that are beneficial for Pos Malaysia would also be positive for Berjaya Food (BJFood), and here's why:

1. Improved Earnings in the Broader Economy: BJFood's business, which includes the operations of well-known brands like Starbucks, Kenny Rogers Roasters, and other food and beverage outlets, tends to thrive when consumer spending is strong. Improved earnings across sectors signal a healthier economy, where consumers may have higher disposable income, boosting foot traffic and sales at BJFood’s outlets.


2. Stronger Ringgit: A stronger ringgit would reduce the cost of imported goods and raw materials, such as coffee beans, packaging, and other food ingredients BJFood relies on. This can improve profit margins as the company spends less on imports, making it more competitive.


3. Increased Investor Confidence: With Rakuten Trade raising its KLCI target, investor sentiment in the Malaysian stock market improves. This can attract more institutional and retail investors to BJFood, which would likely improve its stock price and market valuation.


4. Growth Opportunities: A positive economic environment can encourage BJFood to expand more aggressively, whether through opening new stores or acquiring new brands. A higher stock price would make it easier for BJFood to raise capital for expansion projects or make strategic acquisitions.


5. Lower Financing Costs: A stronger economy often leads to more favorable financing conditions. BJFood may benefit from lower interest rates, making it easier to finance expansion or other strategic initiatives at a lower cost.



In summary, the improved earnings outlook, stronger currency, and bullish market conditions would help BJFood by driving higher consumer spending, reducing input costs, and enhancing its growth prospects.

More boosters yah hehehe

If Rakuten Trade raises its year-end KLCI target to 1,780 due to improved earnings and a stronger ringgit, it can positively impact Pos Malaysia in several ways:

1. Market Sentiment: A higher KLCI target often indicates improving investor confidence in the Malaysian economy. This positive sentiment can benefit Pos Malaysia as a publicly listed company, potentially attracting more investors to its stock.


2. Stronger Ringgit: A stronger ringgit can reduce the cost of imports and improve the company's financials, especially if Pos Malaysia relies on foreign technology or services. It could also enhance the profitability of its international postal and logistics operations by lowering currency exchange losses.


3. Improved Earnings: If general corporate earnings in Malaysia improve, Pos Malaysia could also benefit from higher demand for its services, especially in logistics and e-commerce, which are sensitive to economic growth.


4. Higher Valuation: With the KLCI rising, Pos Malaysia's stock price might appreciate, improving its market capitalization and allowing it to access capital more easily for expansion or new ventures, such as the potential Pos Shop & Café IPO that you are interested in.



Overall, these economic improvements could create favorable conditions for Pos Malaysia to execute its strategies and potentially enhance its investment appeal.

Here are the possibilities for the privatization of Pos Malaysia by DRB-HICOM jointly with Geely:

- **DRB-HICOM’s Majority Stake**: DRB-HICOM may privatize Pos Malaysia to restructure and enhance value, leveraging its major ownership.

- **Geely’s Interest**: Geely could partner in the privatization to expand its logistics capabilities in Southeast Asia, aligning with its global ambitions.

- **Synergies with Proton**: A joint privatization could create synergies between Pos Malaysia’s logistics network and Proton’s automotive supply chain for greater efficiency.

- **Turnaround Potential**: Privatization could enable a more aggressive turnaround strategy for Pos Malaysia, focusing on e-commerce logistics and modernizing operations.

- **Geely’s Global Logistics Ambitions**: Pos Malaysia could be a strategic asset for Geely’s broader logistics and mobility expansion plans across ASEAN.

- **Government Relations**: DRB-HICOM’s ties with the Malaysian government could facilitate regulatory approval, although political concerns may arise due to Geely’s foreign involvement.

- **Funding Capacity**: Both DRB-HICOM and Geely have the financial means to execute a privatization deal, likely through a combination of debt and equity.

- **Regulatory and Stakeholder Approval**: Potential challenges include gaining regulatory approval and overcoming possible opposition from minority shareholders.

- **Integration Challenges**: Post-privatization, integrating Pos Malaysia’s operations with Geely and DRB-HICOM may present operational and cultural hurdles.

The potential privatization of **Pos Malaysia** by **DRB-HICOM** jointly with **Geely** could be a strategic move, but whether it is very likely depends on several factors. Here’s an analysis of why such a scenario could unfold and what makes it plausible:

### 1. **DRB-HICOM’s Major Stake**
DRB-HICOM holds a majority stake in Pos Malaysia, and they may consider privatizing the company if they see the opportunity to restructure, streamline, and enhance value without the scrutiny and pressure of the public market. DRB-HICOM has done similar moves in the past with its other assets, and this could be part of a broader restructuring strategy.

### 2. **Geely’s Interest in Expanding Operations**
Geely, a major Chinese automotive and technology company, has already partnered with DRB-HICOM through their investment in Proton. Geely has shown interest in expanding its influence in Malaysia and ASEAN, and Pos Malaysia’s infrastructure could complement its logistics, e-commerce, and mobility solutions strategy. By jointly privatizing Pos Malaysia, Geely could bring its technological expertise to enhance operations, such as modernizing logistics through automation and AI.

### 3. **Synergies with Proton and Automotive Logistics**
If Geely and DRB-HICOM take Pos Malaysia private, they could explore synergies between Pos Malaysia’s logistics network and Proton’s automotive supply chain. A fully integrated logistics system could provide cost efficiencies for Geely’s automotive operations, including vehicle distribution, parts delivery, and after-sales services.

### 4. **Turnaround Potential**
Pos Malaysia has faced challenges in recent years due to declining mail volumes, but its logistics and parcel delivery segment has strong growth potential, especially with the boom in e-commerce. Privatizing the company could allow DRB-HICOM and Geely to implement a more aggressive turnaround strategy, focusing on modernizing operations, adopting new technologies, and expanding its e-commerce logistics capabilities. This could make the company more competitive without being hindered by public market pressures.

### 5. **Strategic Fit for Geely’s Global Logistics Ambitions**
Geely has global ambitions in mobility, logistics, and new energy technologies. Privatizing Pos Malaysia could give Geely a foothold in the Malaysian logistics market, which it could potentially expand across Southeast Asia. Given Malaysia’s strategic location and trade links, Pos Malaysia’s logistics capabilities could be an asset in Geely’s long-term plans for expanding its global operations.

### 6. **Government Relations and National Interest**
Since Pos Malaysia plays a key role in national postal services, a joint privatization involving Geely, a foreign entity, would need to navigate regulatory and political hurdles. However, DRB-HICOM’s ties with the Malaysian government may help smoothen this process, especially if the privatization is positioned as a strategic move to strengthen the company’s competitiveness.

### 7. **Potential Funding and Capital Requirements**
Both DRB-HICOM and Geely have the financial capacity to execute such a privatization. If they see long-term value in the deal, they could raise the necessary capital through a combination of debt and equity financing.

### Obstacles to Consider:
1. **Regulatory Approval**: Given the strategic importance of Pos Malaysia, any privatization involving a foreign partner like Geely would likely require regulatory approvals, which could delay or complicate the process.

2. **Stakeholder Opposition**: Some minority shareholders or stakeholders might oppose the move if they feel the privatization undervalues the company or if they have concerns about foreign involvement in a national asset.

3. **Integration Challenges**: Even if the privatization is successful, integrating Pos Malaysia’s logistics operations with Geely’s or DRB-HICOM’s other businesses could pose challenges in terms of culture, technology, and operational alignment.

### Conclusion:
While it is plausible that DRB-HICOM, possibly in partnership with Geely, could privatize Pos Malaysia, especially given the potential synergies and turnaround opportunities, whether it is **very likely** depends on factors such as market conditions, regulatory approvals, and the strategic alignment of both companies. Geely’s involvement could add significant value to the company’s logistics operations, but the privatization process would require careful navigation of regulatory and political landscapes.

Privatization of Berjaya Food Berhad (BJFood) is a possibility, though it would depend on several factors, such as the strategic goals of its major shareholders and the market environment. Here are some considerations that could make privatization feasible:

### 1. **Major Shareholder Control**
Tan Sri Vincent Tan, through his investment vehicle Berjaya Corporation Berhad, holds significant ownership in BJFood. If he and Berjaya Corporation decide to consolidate ownership, they could consider privatizing the company, especially if they believe the stock is undervalued and they can unlock greater value by taking it private.

### 2. **Undervaluation of Stock**
If BJFood’s stock price is considered undervalued relative to its potential future performance, privatization could allow the company to restructure, implement long-term strategies, and grow without the short-term pressure of public market expectations. Major shareholders could believe that they can enhance profitability and sell or re-list the company at a later date at a higher valuation.

### 3. **Operational Flexibility**
Privatizing BJFood could give management more operational flexibility, as it would no longer be accountable to public shareholders. This could allow for more aggressive long-term strategies such as restructuring or investments in growth areas without worrying about quarterly earnings reports or market sentiment.

### 4. **Strategic Realignment**
The Berjaya Group has a history of taking companies private when it sees the need for strategic realignment or turnaround. If BJFood’s management believes that it could better pursue its long-term vision without the scrutiny of the public market, privatization could be an option.

### 5. **Industry Consolidation**
If there are broader consolidation trends in the food and beverage industry, Berjaya Corporation might consider privatization as a means to reposition BJFood, either to streamline the business or to merge with another entity before eventually relisting or selling the company.

### 6. **Cash Flow and Financial Position**
If BJFood maintains strong cash flow and a healthy financial position, Berjaya Corporation or another potential buyer could easily finance a buyout. This would make privatization a more attractive option if it aligns with the goals of the major shareholders.

### 7. **Market Environment**
The feasibility of privatization also depends on market conditions. If the broader stock market is volatile or if there is uncertainty about the future of the industry, major shareholders may prefer to exit the public market and focus on long-term private strategies.

### Potential Obstacles:
1. **Shareholder Approval**: Privatization requires approval from shareholders, which could be challenging if minority shareholders feel that the offer price is too low or if they prefer the liquidity of a public listing.

2. **Funding**: Financing a buyout requires significant capital, and while Berjaya Corporation has financial strength, it must ensure it can fund such a move without straining other business areas.

In summary, while privatization of BJFood is possible, it depends on a combination of shareholder intent, market conditions, and long-term strategic goals. If Berjaya Corporation believes it can achieve better value or growth away from public markets, this scenario could unfold.

Berjaya Food (BJFood) has employed several key strategies to facilitate its turnaround and improve its performance. Some of the most effective strategies used include:

### 1. **Starbucks Expansion Strategy**
BJFood heavily focused on expanding its Starbucks store network in Malaysia and Southeast Asia. By strategically increasing store count in both high-traffic urban areas and underserved suburban locations, the company boosted revenue streams. Additionally, they targeted drive-thru locations and smaller kiosks to capture diverse customer segments.

### 2. **Digital Transformation & E-Commerce**
The company adopted a strong digital strategy, enhancing the Starbucks mobile app and rolling out mobile ordering, delivery services, and cashless payments. These efforts, especially during the pandemic, helped maintain customer engagement and sales. The Starbucks Rewards program, which incentivized customer loyalty, was instrumental in driving repeat purchases and improving customer retention.

### 3. **Menu Innovation**
BJFood diversified its product offerings by introducing new, innovative menu items, such as plant-based and healthier food options, seasonal beverages, and premium food choices. This allowed the company to appeal to a broader demographic and capture trends in consumer preferences for sustainability and health-conscious eating.

### 4. **Cost Management and Operational Efficiency**
To manage inflationary pressures and rising costs, BJFood implemented tight control over expenses. They focused on streamlining operations, improving supply chain management, and enhancing labor productivity. The company also optimized its store layouts and invested in technology to increase operational efficiency.

### 5. **Sustainability Initiatives**
BJFood aligned itself with global sustainability trends by focusing on eco-friendly packaging, encouraging the use of reusable cups, and ensuring ethical sourcing of coffee for its Starbucks brand. These sustainability efforts resonated with a growing base of environmentally conscious consumers, boosting the company’s brand image.

### 6. **Franchise Model for Kenny Rogers Roasters**
BJFood explored expanding Kenny Rogers Roasters through franchising, particularly in international markets like the Philippines. This allowed BJFood to expand its footprint with lower capital requirements, leveraging the franchise model to drive growth without significant direct investment.

### 7. **Brand Collaborations and Partnerships**
The company pursued strategic partnerships and collaborations with local suppliers, influencers, and brands to increase its brand visibility. Limited-time offerings, local collaborations, and marketing tie-ins helped create buzz around the brand and drive customer traffic.

### 8. **Focus on Core Brands**
BJFood focused its resources on its core brands, primarily Starbucks and Kenny Rogers Roasters, while streamlining its portfolio to concentrate on high-performing assets. This helped the company allocate more resources to growth areas, maximizing returns.

### 9. **Tourism Recovery Post-COVID**
As the tourism industry began to recover post-pandemic, BJFood capitalized on increased foot traffic at key locations like airports, malls, and tourist destinations. The Starbucks brand, being highly recognizable to international travelers, benefited significantly from this recovery.

By employing these strategies, BJFood was able to stabilize its financial performance, improve profitability, and position itself for sustainable growth in the competitive food and beverage industry.

Berjaya Food (BJFood) has a presence in the Philippines, mainly through its **Kenny Rogers Roasters** brand. BJFood operates Kenny Rogers Roasters restaurants in the Philippines through a joint venture with local partners, which has been a significant part of its international operations.

While BJFood is known for its large Starbucks network in Malaysia, its operations in the Philippines are focused primarily on the Kenny Rogers Roasters franchise. The Philippines is one of the key markets for the Kenny Rogers brand, with a substantial number of outlets across the country, making it a well-established name in the fast-casual dining sector there.

However, the scale of BJFood's business in the Philippines is **smaller** compared to its Starbucks operations in Malaysia. The company has been focusing more heavily on its Starbucks expansion domestically and regionally in Southeast Asia, but Kenny Rogers Roasters remains a core part of its portfolio in the Philippines.

The exact size and contribution of the Philippines market to BJFood's overall revenue are generally not highlighted as much as its core Starbucks business, but the Kenny Rogers brand has maintained a strong presence in the country for years, with its grilled chicken offerings being well-received.

Berjaya Food (BJFood) has announced several business strategies to support its growth and enhance its market position:

1. **Expansion of Starbucks Outlets**: BJFood continues to focus on the aggressive expansion of its Starbucks network, both in Malaysia and other Southeast Asian markets. They aim to penetrate more urban and suburban areas, targeting new locations to increase their store count and reach.

2. **Increased Focus on Digital Transformation**: BJFood is enhancing its digital capabilities, including strengthening its Starbucks mobile app for ordering, rewards programs, and cashless payments. The goal is to drive customer engagement through digital platforms and improve operational efficiency.

3. **Menu Diversification**: The company has been focusing on introducing new and innovative menu items to cater to evolving consumer tastes. This includes expanding plant-based food options, healthier menu alternatives, and seasonal beverages to attract a broader customer base.

4. **Sustainability and Green Initiatives**: BJFood has placed greater emphasis on sustainability, aligning its strategies with environmental goals. This includes reducing waste through sustainable packaging, promoting reusable cups, and sourcing coffee beans ethically for its Starbucks operations.

5. **Franchise Model Expansion**: BJFood is also exploring opportunities to expand its business via franchising, particularly with Kenny Rogers Roasters. This approach will allow them to grow their footprint with lower capital expenditure, leveraging franchise partners.

6. **Operational Efficiency and Cost Management**: BJFood has focused on streamlining its operations to manage costs effectively, particularly in response to inflationary pressures. This includes optimizing supply chain management, labor costs, and leveraging economies of scale.

7. **Leveraging Partnerships**: BJFood has formed strategic partnerships and collaborations, such as launching limited-time offerings with local brands or suppliers. These partnerships help create buzz around its offerings and attract new customers.

These strategies collectively aim to strengthen BJFood’s market leadership, improve profitability, and drive long-term growth across its portfolio.

Berjaya Food International (BFI), the international arm under Berjaya Food Berhad (BFood), is expanding into the Nordic market with the announcement that it has been granted the rights to operate Starbucks stores in three countries, Iceland, Denmark, and Finland.5 Aug 2024
https://sme.asia › Business
Berjaya Food International Expands Starbucks into the ...
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5 Aug 2024 — Berjaya Food Bhd (KL:BJFOOD) said on Monday its international arm has secured the rights to operate Starbucks stores in

Expanding Starbucks or Berjaya Food’s operations to countries like Finland or similar markets could be driven by several strategic reasons:

1. **Market Diversification**: Expanding into Finland or other international markets helps reduce dependence on the Malaysian or Southeast Asian market. Diversification can protect the company from local economic downturns and regulatory changes, spreading risk across different regions.

2. **Untapped Market Potential**: Finland has a strong coffee culture, with one of the highest per capita coffee consumption rates in the world. However, the market is less saturated with international coffee chains compared to other European countries, providing opportunities for new entrants like Starbucks to capture market share.

3. **Economic Stability**: Finland and other Nordic countries offer a stable economy, high levels of disposable income, and a consumer base willing to spend on premium experiences. This makes it an attractive market for a premium brand like Starbucks.

4. **Tourism and Urbanization**: Finland, like other European countries, attracts a significant number of international tourists, particularly in its capital city, Helsinki, and other urban areas. Expanding into such regions allows Starbucks to cater to both locals and tourists, creating a steady stream of potential customers.

5. **Growing Preference for International Brands**: Many consumers in Finland and similar countries are open to international brands, especially those that offer unique experiences and innovative product offerings. Starbucks, with its well-established global brand, could appeal to these consumers.

6. **Sustainability and Ethical Sourcing**: Starbucks’ commitment to sustainability and ethical sourcing aligns well with the values of Finnish consumers, who tend to prioritize environmental and social responsibility. This gives Starbucks an edge in capturing market share in a socially conscious market.

7. **Digital and Delivery Opportunities**: The growing trend of online ordering, app-based loyalty programs, and delivery services provides Starbucks with an opportunity to leverage its digital strategies in a tech-savvy market like Finland. This enhances customer convenience and fosters loyalty.

8. **Competitive Advantage**: While local coffee shops dominate in Finland, Starbucks’ global brand recognition, consistent quality, and innovation in menu offerings can help it stand out in the competitive landscape.

In summary, expanding into Finland and similar markets would allow Starbucks or BJFood to tap into a coffee-loving population, leverage the brand’s premium positioning, and take advantage of a stable and growing economy.

Berjaya Food Berhad (BJFood), the operator of Starbucks Malaysia, has potential for a rise in its share price, driven by several factors:

1. **Starbucks Malaysia’s Performance**: As Starbucks Malaysia rebounds due to increasing consumer spending, digital initiatives, and store expansion, BJFood is positioned to benefit directly from higher revenues and profits. Starbucks remains a key growth driver for BJFood.

2. **Strong Financials**: BJFood has shown steady financial performance, with increasing revenues and profit margins. The recovery of consumer demand post-pandemic will likely boost its earnings, which could drive investor confidence and share price growth.

3. **Diversified Portfolio**: In addition to Starbucks, BJFood also operates Kenny Rogers Roasters and other food brands. The diversification provides a cushion against risks tied to a single brand, while expanding its market reach.

4. **Economic Recovery**: Malaysia's broader economic recovery, with improving consumer sentiment and spending power, supports BJFood’s growth potential. As disposable incomes rise, more consumers are likely to frequent cafes and restaurants.

5. **Dividends and Investor Confidence**: BJFood has been consistent in paying dividends, which makes it attractive to income-seeking investors. A solid dividend policy may help bolster its stock appeal, especially if financial performance continues to improve.

6. **Long-term Growth Strategy**: BJFood’s focus on innovation, such as healthier menu options, digital transformation, and sustainability initiatives, aligns with evolving consumer trends, making the company’s growth outlook positive.

7. **Tourism Recovery**: As Malaysia's tourism industry recovers, BJFood’s outlets, particularly Starbucks locations in tourist hotspots, could see increased footfall, boosting sales and profitability.

Given these factors, BJFood’s share price could see a rise, particularly if positive trends in consumer spending and the recovery in the food and beverage industry continue.

Starbucks Malaysia is likely to rebound due to several key factors:

1. **Consumer Spending Recovery**: As the economy recovers post-pandemic, consumer spending on non-essential items, including dining out and coffee, is increasing. People are resuming their normal lifestyles, which include visiting cafes like Starbucks.

2. **Expansion Plans**: Starbucks Malaysia continues to open new stores, expanding into urban and suburban areas. This increase in physical presence is likely to drive sales growth and improve brand visibility.

3. **Digital Initiatives**: Starbucks Malaysia has invested in digital strategies such as mobile ordering, delivery services, and rewards programs. The Starbucks Rewards loyalty program is popular, fostering repeat business and customer retention.

4. **Innovative Offerings**: By introducing seasonal beverages, food items, and new product lines (e.g., plant-based drinks), Starbucks attracts both new customers and existing loyalists. These innovative offerings help to differentiate the brand in a competitive market.

5. **Tourism Recovery**: As Malaysia's tourism sector recovers, Starbucks locations at airports, tourist spots, and city centers will benefit from increased foot traffic. Tourists often prefer familiar international brands like Starbucks, boosting sales.

6. **Sustainability Initiatives**: Starbucks’ focus on sustainability and ethical sourcing resonates with consumers who prioritize environmental and social responsibility, further strengthening its market position.

7. **Premium Brand Perception**: Despite the availability of local coffee chains, Starbucks maintains a strong premium brand image, attracting a segment of consumers willing to pay for the Starbucks experience.

These factors combined make Starbucks Malaysia poised for a rebound in the coming period.

US Fed's 50-bp rate cut seen unleashing funds into Malaysian assets
By Luqman Amin & Anis Hazim / theedgemalaysia.com
19 Sep 2024, 09:13 pm

US Fed's 50-bp rate cut seen unleashing funds into Malaysian assets
By Luqman Amin & Anis Hazim / theedgemalaysia.com
19 Sep 2024, 09:13 pm

Tech
Singapore data centre firm buys land across Asia, including Malaysia, to serve AI demand

Ringgit soars to 28-month high against USD as Fed cuts rates

https://theedgemalaysia.com/node/727224

https://theedgemalaysia.com/node/727224

https://soranews24.com/2024/09/18/starbucks-teams-up-with-the-oldest-of-japans-six-ancient-kilns-to-create-a-bizen-ware-coffee-mug/

Yes, there are a few reasons why it might rebound:

1. **Past Performance**: Despite recent setbacks, BJFood has shown strong performance over the past three years, with a significant increase in share price and a transition from losses to profitability¹.

2. **Expansion Plans**: BJFood is planning to open new stores, including Starbucks and Paris Baguette outlets, which could boost revenue in the long term².

3. **Improved Margins**: The company has been working on improving its margins through store consolidation and better management of promotional campaigns².

4. **Market Sentiment**: Sometimes, market sentiment can shift, especially if the company shows signs of recovery or if there are positive developments in the broader market³.

Grab some yah 😉😃

stay put & be positive

Announced Date Change Type Shares Name
18 Sep 2024 13 Sep 2024 Acquired 1,400,000 BERJAYA CORPORATION BERHAD
18 Sep 2024 13 Sep 2024 Acquired 1,710,000 BERJAYA GROUP BERHAD
18 Sep 2024 12 Sep 2024 Acquired 6,557,000 JUARA SEJATI SDN BHD
18 Sep 2024 13 Sep 2024 Acquired 1,400,000 BERJAYA GROUP BERHAD
18 Sep 2024 12 Sep 2024 Acquired 2,207,000 JUARA SEJATI SDN BHD
18 Sep 2024 12 Sep 2024 Acquired 6,557,000 BERJAYA CORPORATION BERHAD
18 Sep 2024 13 Sep 2024 Acquired 1,710,000 JUARA SEJATI SDN BHD
18 Sep 2024 12 Sep 2024 Acquired 2,207,000 BERJAYA CORPORATION BERHAD
18 Sep 2024 12 Sep 2024 Acquired 6,557,000 BERJAYA GROUP BERHAD
18 Sep 2024 13 Sep 2024 Acquired 1,400,000 JUARA SEJATI SDN BHD
18 Sep 2024 13 Sep 2024 Acquired 1,710,000 BERJAYA CORPORATION BERHAD
18 Sep 2024 12 Sep 2024 Acquired 2,207,000 BERJAYA GROUP BERHAD
01 Jul 2024 28 Jun 2024 Acquired 9,090,000 BERJAYA CORPORATION BERHAD
01 Jul 2024 28 Jun 2024 Acquired 9,090,000 BERJAYA GROUP BERHAD
01 Jul 2024 28 Jun 2024 Acquired 9,090,000 JUARA SEJATI SDN BHD
16 May 2024 13 May 2024 Acquired 440,000 BERJAYA GROUP BERHAD
16 May 2024 13 May 2024 Acquired 440,000 JUARA SEJATI SDN BHD
16 May 2024 13 May 2024 Acquired 440,000 BERJAYA CORPORATION BERHAD
14 May 2024 10 May 2024 Acquired 2,300,000 JUARA SEJATI SDN BHD
14 May 2024 10 May 2024 Acquired 2,300,000 BERJAYA CORPORATION BERHAD
14 May 2024 10 May 2024 Acquired 2,300,000 BERJAYA GROUP BERHAD

target price 40-45sen before Oct 1 with the share buyback support from vincent tan's group of companies. good luck, guys

VWAP:0.3653Avg Vol/Trans:69.10

Geely's success with Proton provides a strong case for its potential to turn around Pos Malaysia. Here are some reasons why Geely might be able to replicate its success:

1. **Strategic Management**: Geely has a proven track record of implementing effective management strategies and operational efficiencies. Their approach could help streamline Pos Malaysia's operations.

2. **Financial Strength**: Geely's financial resources and investment capabilities can provide the necessary capital for restructuring and modernization efforts at Pos Malaysia.

3. **Technological Expertise**: Geely's focus on innovation and technology could be leveraged to enhance Pos Malaysia's logistics, delivery systems, and digital services, making them more competitive.

4. **Global Experience**: Geely's experience in turning around other companies, including Volvo and Proton, demonstrates their ability to adapt and succeed in different markets and industries.

5. **Partnerships and Synergies**: Geely could form strategic partnerships and leverage synergies with other companies within its portfolio to benefit Pos Malaysia, such as integrating advanced logistics solutions.

6. **Market Understanding**: Geely's understanding of the Southeast Asian market, gained through its work with Proton, can be advantageous in addressing the specific challenges and opportunities in Malaysia.

These factors suggest that Geely has the potential to bring about significant positive changes at Pos Malaysia, similar to its success with Proton.

Wall Street analysts' positive forecast for BJFood's stock price can be attributed to several key factors:

1. **Strong Brand Performance**: BJFood's portfolio includes popular brands like Starbucks, which continues to perform well and expand its presence in Malaysia and other regions.

2. **Expansion and Growth Plans**: The company has been actively opening new outlets and exploring new markets, which can drive revenue growth.

3. **Financial Health**: BJFood has shown consistent financial performance with steady revenue growth and profitability, which boosts investor confidence.

4. **Market Trends**: The food and beverage sector in Malaysia is growing, driven by increasing consumer spending and a trend towards dining out. BJFood is well-positioned to benefit from these trends.

5. **Sustainability Initiatives**: The company's focus on sustainability and reducing environmental impact resonates well with consumers and investors who prioritize corporate responsibility.

6. **Dividend Payouts**: BJFood's history of paying dividends makes it an attractive option for investors looking for both income and capital appreciation.

These factors collectively contribute to the optimistic price targets set by analysts. 😎

Wall Street analysts forecast BJFOOD stock price to rise over the next 12 months.
According to Wall Street analysts, the average 1-year price target for BJFOOD is 0.5 MYR with a low forecast of 0.3 MYR and a high forecast of 1.04 MYR.

Price-To-Sales vs Peers: BJFOOD is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (1x).

Rewards
Earnings are forecast to grow 91.83% per year
Trading at good value compared to peers and industry

😉
Investing in Berjaya Food Berhad (BJFood) can be justified based on several factors:

Strong Brand Portfolio: BJFood operates well-known brands like Starbucks, Kenny Rogers Roasters, and Jollibean. These brands have a strong market presence and loyal customer base.
Expansion Plans: The company has been actively expanding its outlets, particularly Starbucks, which continues to show robust growth in Malaysia and other regions.
Financial Performance: BJFood has shown consistent revenue growth and profitability. Their financial statements often reflect a healthy balance sheet with manageable debt levels.
Market Trends: The food and beverage industry in Malaysia is growing, driven by increasing consumer spending and a trend towards dining out. BJFood is well-positioned to capitalize on these trends.
Sustainability Initiatives: BJFood has been focusing on sustainability, which is increasingly important to consumers. Their efforts in reducing environmental impact and promoting sustainable practices can enhance their brand reputation.
Dividend Payouts: The company has a history of paying dividends, which can be attractive to investors looking for income in addition to capital appreciation.

Buy n keep for medium n long term yah

BJFOOD is a prominent player in the Malaysian food and beverage industry, known for its successful operations of popular brands like Starbucks, Kenny Rogers Roasters, and Jollibean. Here are some reasons why investing in BJFOOD might be considered:
Strong Brand Portfolio
* Established Brands: The company's diverse portfolio includes well-known brands with loyal customer bases.
* Brand Recognition: The strong brand recognition can contribute to consistent revenue streams.
Growth Potential
* Expansion Plans: BJFOOD has shown a consistent focus on expanding its operations both domestically and internationally.
* Market Opportunities: The growing demand for food and beverage products, especially in emerging markets, presents opportunities for growth.
Dividend Potential
* Dividend History: BJFOOD has a history of paying dividends to its shareholders.
* Dividend Yield: The company's dividend yield can be attractive to income-seeking investors.
Stable Business Model
* Essential Industry: The food and beverage industry is generally considered essential and less susceptible to economic downturns.
* Recurring Revenue: The company's business model often involves recurring revenue from franchise fees and royalties.

Potential for Long-Term Growth: With the focus on expanding into new regions, including underdeveloped or less saturated markets, BJFood is positioning itself for long-term growth. Its venture into the Nordic market represents this strategic foresight.

Berjaya Food Berhad (BJFood)'s venture into the Nordic region with Starbucks could be motivated by several strategic factors:

1. Market Expansion: Expanding into the Nordic region offers BJFood the opportunity to tap into a new market. The Nordic countries, known for their high standard of living and strong consumer purchasing power, represent a potentially lucrative opportunity for a premium brand like Starbucks.


2. Brand Popularity: Starbucks has strong brand recognition globally. Bringing Starbucks into the Nordic region can capitalize on this brand loyalty and demand for high-quality coffee experiences, which aligns with the lifestyle and culture of Nordic consumers who have a strong coffee-drinking tradition.


3. Diversification of Revenue Streams: Venturing into a different geographical region helps BJFood diversify its revenue streams. By entering the Nordic market, BJFood reduces its reliance on its existing markets (such as Malaysia) and spreads its business risk across different regions.


4. Strategic Growth Opportunity: The Nordic market presents a relatively untapped opportunity for Starbucks’ business model, with less competition from other global coffee chains compared to more saturated markets in North America or Asia. Entering the Nordic region early could allow BJFood to establish a strong foothold and capture market share.


5. Partnership with Starbucks: BJFood’s strong and established partnership with Starbucks allows it to confidently expand its presence with the backing of a globally successful brand. BJFood can leverage Starbucks' global expertise, supply chain, and brand reputation to ensure smoother market entry.


6. Long-Term Growth Strategy: As BJFood continues to expand its portfolio and explore new markets, venturing into the Nordic region aligns with its strategy of long-term growth, increasing international exposure, and further scaling the business.



This move also highlights BJFood's ambition to become a key player in the global food and beverage industry, beyond its traditional markets.

Investing in Berjaya Food Berhad (BJFood) now could be appealing for several reasons, depending on market conditions and company performance:

1. Strong Brand Portfolio: BJFood operates well-known brands such as Starbucks, Kenny Rogers Roasters, and Jollibean. Starbucks, in particular, has been a key growth driver, contributing significantly to revenue.


2. Resilient Consumer Demand: The food and beverage (F&B) industry tends to be resilient even in times of economic uncertainty, as people continue to dine out or buy ready-made meals. The recovery of consumer spending post-pandemic and the reopening of economies could further boost sales.


3. Expansion Plans: BJFood has been expanding its outlets, particularly for Starbucks, which has a strong foothold in Malaysia. Continuous expansion could drive revenue growth.


4. Potential for Dividend Income: BJFood has historically paid dividends. For income-seeking investors, this could be attractive if the company maintains or increases its dividend payouts.


5. Focus on Sustainability: Starbucks, under BJFood's operations, has been focusing on sustainability and adopting environmentally friendly practices, which align with growing consumer preferences for responsible companies.


6. Steady Financials: BJFood has demonstrated strong financials in recent quarters, with growing revenue and profit margins, especially from its Starbucks business. Strong earnings growth could signal a potential for capital appreciation.