KUALA LUMPUR: Shares in Berjaya Food Bhd (BFood) rose over 5.7% after it reported earnings that exceeded analysts’ expectations.

       The food and beverage group climbed 5.76%, or 11 sen to RM2.02 at 9.32am, making it one of the top gainers on Bursa Malaysia.

       BFood posted a net profit of RM14.27mil in the fourth quarter ended June 30, 2021 against a net loss of RM30.16mil a year ago.

       Revenue for the quarter grew 62% to RM180.72mil from RM111.57mil previously.

       For the full year ended June 30, BFood posted a net profit of RM47.36mil on revenue of RM717.27mil.

       The board has declared a fourth interim dividend of 1 sen single-tier dividend per share in respect of FY21 to be payable on Sept 23.

       AmInvestment Bank Research said BFood’s FY21’s net profit of RM47.4mil came in within its forecasts but exceeded consensus expectations.

       “It made up 105% and 110% of our and consensus expectations respectively,” it said.

       Going forward, AmInvestment has increased its earnings forecast for FY22F/FY23F by 6%/16% respectively. It expects the group to flourish as the economy opens in 4Q2021.

       “We maintain our ‘buy’ call on BFood with a higher fair value (FV) of RM2.23 per share (from RM2.16 per share previously).

       “Our FV is based on an unchanged PER of 17x FY22F EPS. Our FV also incorporates a 3% price premium for our 4-star ESG rating,” it added.

       RHB Research has maintained a “buy” call on BFood with a new DCF-derived RM2.40 target price from RM2.33 previously.

       “FY21 earnings exceeded expectations on a successful business rationalisation and cost-optimisation efforts, as well as robust sales driven by alternative channels.

       “We continue to like Berjaya Food for its unique positioning as a prime beneficiary of a pickup in foot traffic and expansion plans in FY22 while also demonstrating earnings resiliency in the face of on/off lockdowns,” it added.