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Results Update
For QE31/1/2019, BJFood reported a net profit of RM9.0 million as compared to a net loss of RM11 million incurred in the same quarter last year. The net profit was 28% higher than the net profit reported in the immediate preceding quarter (QE31/10/2018). Revenue rose 8% q-o-q or 10% y-o-y to RM181 million.
Revenue rose q-o-q mainly due to the calendar year end festive promotions, school holidays and the Christmas season during the third quarter, which contributed positively to the higher profit from operations and pre-tax profit for the quarter under review.


Table: BJFood's last 8 quarterly results
If we exclude the extraordinary gain of RM158.6 million recognized in QE31/10/2014, the improved performance in the last quarter became quite clear. This gain was from the recognition of the gain arising from re-measurement of the 50% equity interest in BStarbucks.
Graph: BJFood's last 37 quarterly results 
Valuation
BJFood (closed at RM1.60 at end of morning session) is now trading at a PE of 30 times (based on last 4 quarters' EPS of 5.25 sen. At this PER, BJFood is deemed overvalued.
Technical Outlook
BJFood may have broken above its downtrend line, RR at RM1.55.
 
Chart: BJFood's weekly chart as at Mar 15, 2019_2.50 (Source: Malaysiastock.biz)
 

Conclusion
Based on improved financial performance and mildly positive technical outlook, I revise BJFood's rating to a HOLD. Upside maybe limited due to demanding valuation.

https://klse.i3investor.com/blogs/klselim/198181.jsp
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