KLSE (MYR): BJFOOD (5196)
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Last Price
0.385
Today's Change
+0.015 (4.05%)
Day's Change
0.37 - 0.385
Trading Volume
3,629,700
2024-09-28
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Good123
25,596 posts
Posted by Good123 > 1 week ago | Report Abuse
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.