Hiccups in India store openings… KFCH’s original plan was to open 12 outlets in FY2010, although we understand that the target is now trimmed to 7 outlets, with 2 already opened in Pune and Mumbai in March and April respectively. The reason for the lower targeted opening is due to the unexpected problems in the renovation of the stores combined with various red tape issues when getting approvals. For example, the Mumbai outlet took 5-6 months to complete while the Pune outlet took 7 months to complete, as compared to roughly 5 weeks to open a new outlet in Malaysia.
KFC Holding (M) Berhad : Some Hiccups In India-26/08/2010
Showing posts with label KFC Holdings. Show all posts
Showing posts with label KFC Holdings. Show all posts
Thursday, August 26, 2010
RHB Equity 360° - (KFC, Parkson, Axiata, Gent Plant, Freight, HSL, Fajarbaru, Emas Kiara, IJMC, IJML, IJMP, MCIL, Allianz, MNRB, Lafarge, Wah Seong,..
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- KFCH’s original plan was to open 12 outlets in FY2010, although we understand that target is now trimmed to 7 outlets. The reason for the lower target openings is due to the unexpected problems in the renovation of the stores combined with various red tape issues when getting approvals.
RHB Equity 360° - (KFC, Parkson, Axiata, Gent Plant, Freight, HSL, Fajarbaru, Emas Kiara, IJMC, IJML, IJMP,...
- KFCH’s original plan was to open 12 outlets in FY2010, although we understand that target is now trimmed to 7 outlets. The reason for the lower target openings is due to the unexpected problems in the renovation of the stores combined with various red tape issues when getting approvals.
RHB Equity 360° - (KFC, Parkson, Axiata, Gent Plant, Freight, HSL, Fajarbaru, Emas Kiara, IJMC, IJML, IJMP,...
Wednesday, August 25, 2010
KFC Holding (M) Berhad : In Line With Expectations - 25/08/2010
In Line.KFCH's 1HFY12/10 net profit of RM70m was in line with our and consensus forecasts, accounting for 465 and 48% of our and consensus full year estimates respectively.
KFC Holding (M) Berhad : In Line With Expectations - 25/08/2010
KFC Holding (M) Berhad : In Line With Expectations - 25/08/2010
Thursday, August 5, 2010
KFC Holding (Malaysia) Berhad : Purchase Of Two Shopoffice Units - 05/08/2010
Purchase of two adjoining shopoffices. KFCH has proposed to acquire two units of adjoining shopoffices in Taman Bukit Tiram Fasa 3, Ulu Tiram, Johor for a total purchase consideration of RM1.38m from Advance Development Sdn Bhd, a wholly owned subsidiary of Johor Land. Both purchases will be satisfied via internally-generated funds. We believe both units will be utilised to open a new KFC outlet and a Pizza Hut (under QSR Brands) outlet.
KFC Holding (Malaysia) Berhad : Purchase Of Two Shopoffice Units - 05/08/2010
KFC Holding (Malaysia) Berhad : Purchase Of Two Shopoffice Units - 05/08/2010
RHB Equity 360° - 5 August 2010 (Sime Darby, Market, Affin, AirAsia, KFC; Technical: TDC, Kinsteel)
Top Story : Sime Darby – Is the worst over? Not yet, in our view - Underperform
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- In the first few weeks of his appointment, Sime Darby’s new CEO, Dato’ Mohd Bakke Salleh, has visited all the divisions, met with all the Heads of Departments, reviewed the Group’s long term 4-year plan and set out a strategic plan for all the divisions. On 24 Aug, the Board will meet to review the plan and the results of the forensic audit for the oil & gas division, after which the results for 4QFY10 will be released on 26 Aug. Any further provision required for the two uncompleted projects, (ie. MOQ and Bakun, which are 96% complete), would be done in the 4QFY10 results.
RHB Equity 360° - 5 August 2010 (Sime Darby, Market, Affin, AirAsia, KFC; Technical: TDC, Kinsteel)
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- In the first few weeks of his appointment, Sime Darby’s new CEO, Dato’ Mohd Bakke Salleh, has visited all the divisions, met with all the Heads of Departments, reviewed the Group’s long term 4-year plan and set out a strategic plan for all the divisions. On 24 Aug, the Board will meet to review the plan and the results of the forensic audit for the oil & gas division, after which the results for 4QFY10 will be released on 26 Aug. Any further provision required for the two uncompleted projects, (ie. MOQ and Bakun, which are 96% complete), would be done in the 4QFY10 results.
RHB Equity 360° - 5 August 2010 (Sime Darby, Market, Affin, AirAsia, KFC; Technical: TDC, Kinsteel)
Wednesday, June 23, 2010
KFC Holding (M) Bhd : Share Split, Bonus And Free Warrants Issue - 23/6/2010
Share split, bonus and warrants issue. KFCH has proposed three exercises to be completed in sequence: firstly a 1-to-2 share split; secondly, a 1-for-2 bonus issue; and thirdly, a free warrants issue on a 1-for-25 basis. The entitlement dates are to be announced later. The rationale for these exercises is to improve the liquidity and marketability of KFCH shares and is targeted for completion by 3Q2010.
KFC Holding (M) Bhd : Share Split, Bonus And Free Warrants Issue -23/6/2010
KFC Holding (M) Bhd : Share Split, Bonus And Free Warrants Issue -23/6/2010
RHB Equity 360° - 23 June 2010 (Sunway Holdings, Motor, O&G, Kencana, KFC, Proton; Technical: My E.G.)
Top Story : Sunway Holdings – Earnings visibility improves further
Visit Note:
The high construction margins recorded in 1QFY12/10 appear sustainable over the next few quarters.Property profits from Malaysia are likely to exceed our forecasts as Sunway rides on its seeminglyworkable "boutique development" strategy. The still relatively poor visibility for new public jobs will not derail Sunway's overall growth prospects as growth in non-construction profits remains robust. FY12/10-12 net profit forecasts are raised by 7-11% largely to reflect higher construction margins and stronger property profits from Malaysia. Fair value is raised by 39% from RM1.69 to RM2.35. Maintain Outperform.
RHB Equity 360° - 23 June 2010 (Sunway Holdings, Motor, O&G, Kencana, KFC, Proton; Technical: My E.G.)
Visit Note:
The high construction margins recorded in 1QFY12/10 appear sustainable over the next few quarters.Property profits from Malaysia are likely to exceed our forecasts as Sunway rides on its seeminglyworkable "boutique development" strategy. The still relatively poor visibility for new public jobs will not derail Sunway's overall growth prospects as growth in non-construction profits remains robust. FY12/10-12 net profit forecasts are raised by 7-11% largely to reflect higher construction margins and stronger property profits from Malaysia. Fair value is raised by 39% from RM1.69 to RM2.35. Maintain Outperform.
RHB Equity 360° - 23 June 2010 (Sunway Holdings, Motor, O&G, Kencana, KFC, Proton; Technical: My E.G.)
Wednesday, May 26, 2010
KFC Holding (M) Berhad :Resilience From Quick Service Restaurant Business - 26/05/2010
In line. KFCH’s 1QFY12/10 net profit of RM34.2m was in line with our and consensus forecasts, accounting for 22.9% and 24.1% of our and consensus full year estimates respectively. As expected, no dividend was declared during the quarter.
KFC Holding (M) Berhad :Resilience From Quick Service Restaurant Business - 26/05/2010
KFC Holding (M) Berhad :Resilience From Quick Service Restaurant Business - 26/05/2010
RHB Equity 360° (Market, Consumer, Steel, Kencana, Sunway, MPI, HSL, KFC, Kinsteel, Perwaja, KNM; Technical: Genting Malaysia)-26/05/2010
Top Story : Shifting Trends – Seeking shelter in domestic plays
Market Update
♦ The FBM KLCI has erased all its gains and more during the first five months of 2010 since turning downwards on 13 May. We expect the market to remain volatile, with the risk on the downside.
♦ We have used historical valuations and market data in order to find possible fundamental support levels for the FBM KLCI:
1) Average one-year forward PER for FBM KLCI stocks since 2000 is estimated to be around 15x, and one standard deviation (SD) below the mean is estimated to be around 13.3x, which is coincidentally the same valuation at the next technical support of 1,154 for the FBM KLCI; and
2) Annual returns for the FBM KLCI over the last 32 years have averaged around 13% and 1SD below the mean would imply a pullback of around -17.6%. However, we note that a 1SD fall has only occurred seven times over the last 32 years. As it stands, the FBM KLCI has already fallen by 7.2% from the peak this year.
♦ Having painted a near-term bearish picture for the market, we highlight that the correction is driven more by external factors relating to fears over global macroeconomic conditions especially in the EU. We acknowledge that these concerns could result in some of our earnings forecasts coming under pressure.
Therefore, in our view, companies that have little or hedged exposure to overseas markets or imported costs are likely to be more resilient. These domestic plays include Maxis, TNB, PLUS, Allianz, AEON, KFC, KPJ and B-Toto.
RHB Equity 360°(Market, Consumer, Steel, Kencana, Sunway, MPI, HSL, KFC, Kinsteel, Perwaja, KNM;Technical: ...
Market Update
♦ The FBM KLCI has erased all its gains and more during the first five months of 2010 since turning downwards on 13 May. We expect the market to remain volatile, with the risk on the downside.
♦ We have used historical valuations and market data in order to find possible fundamental support levels for the FBM KLCI:
1) Average one-year forward PER for FBM KLCI stocks since 2000 is estimated to be around 15x, and one standard deviation (SD) below the mean is estimated to be around 13.3x, which is coincidentally the same valuation at the next technical support of 1,154 for the FBM KLCI; and
2) Annual returns for the FBM KLCI over the last 32 years have averaged around 13% and 1SD below the mean would imply a pullback of around -17.6%. However, we note that a 1SD fall has only occurred seven times over the last 32 years. As it stands, the FBM KLCI has already fallen by 7.2% from the peak this year.
♦ Having painted a near-term bearish picture for the market, we highlight that the correction is driven more by external factors relating to fears over global macroeconomic conditions especially in the EU. We acknowledge that these concerns could result in some of our earnings forecasts coming under pressure.
Therefore, in our view, companies that have little or hedged exposure to overseas markets or imported costs are likely to be more resilient. These domestic plays include Maxis, TNB, PLUS, Allianz, AEON, KFC, KPJ and B-Toto.
RHB Equity 360°(Market, Consumer, Steel, Kencana, Sunway, MPI, HSL, KFC, Kinsteel, Perwaja, KNM;Technical: ...
Friday, April 23, 2010
Corporate Highlights...-23/04/2010
♦ Property - M-REITs
Sector Update : A New “Norm” To Propel Valuations To New Highs
♦ Motor
Sector Update : March TIV Hit 53-Month High
♦ Mah Sing
News Update : Buys Land In Jalan Ampang
♦ KFC Holdings (M)
News Update : Acquisition Of Land In Johor Bahru
♦ British American Tobacco
Results Note : TIV Remains Under Pressure
Corporate Highlights...-23/04/2010
Sector Update : A New “Norm” To Propel Valuations To New Highs
♦ Motor
Sector Update : March TIV Hit 53-Month High
♦ Mah Sing
News Update : Buys Land In Jalan Ampang
♦ KFC Holdings (M)
News Update : Acquisition Of Land In Johor Bahru
♦ British American Tobacco
Results Note : TIV Remains Under Pressure
Corporate Highlights...-23/04/2010
KFC Holdings (M) Berhad : Acquisition Of Land In Johor Bahru-23/04/2010
Acquisition of land in Bandar Dato Onn, Johor Bahru... KFC has entered into an S&P agreement with Johor Land Bhd for the acquisition of a 2 acre piece of land (which forms part of an 8.1 acre piece of commercial land) in Bandar Dato Onn (BDO), Johor Bahru, for cash consideration of RM5.9m, which will be funded by internally generated funds.
KFC Holdings (M) Berhad : Acquisition Of Land In Johor Bahru-23/04/2010
KFC Holdings (M) Berhad : Acquisition Of Land In Johor Bahru-23/04/2010
RHB Equity 360° (MREITS, Motor, Mah Sing, KFC, BAT; Technical: Gamuda) - 23/04/2010
Top Story : MREITS – A new “norm” to propel valuations to new highs Overweight
Sector Update
♦ M-REITs are currently already trading at a slight premium to the historical average. However, we remain bullish on the sector as we expect a new “norm” to gradually emerge, taking the premium higher to match or even surpass the high end of the historical range, propelled by a buoyant stock market, and more importantly, the continued narrowing of the yield gap with S-REITs.
♦ Our belief is supported by narrowing yield gap between M-REITs and S-REITs as well as between MREITs and risk free debt. In view of a buoyant stock market and a new “norm” that is taking shape with the rising relative investability of M-REITs vis-Ã -vis S-REITs, we expect M-REIT yields to soon revisit the lows of 6.8-7.0% pre-crisis level.
♦ We are maintaining Overweight stance on M-REITs due to: (1) The bright prospects of the investment property sector in Malaysia underpinned by economic growth, rising consumerism backed by a young demographic structure in Malaysia and growing tourist arrival; (2) Rising M-REITs’ relative investability visà - vis S-REITs and risk-free debt on the back of an expanding publicly traded M-REIT sector; and (3) Rising investors’ appetite for asset classes that provide a hedge against inflation such as REITs.
RHB Equity 360° (MREITS, Motor, Mah Sing, KFC, BAT; Technical: Gamuda)-23/04/2010
Sector Update
♦ M-REITs are currently already trading at a slight premium to the historical average. However, we remain bullish on the sector as we expect a new “norm” to gradually emerge, taking the premium higher to match or even surpass the high end of the historical range, propelled by a buoyant stock market, and more importantly, the continued narrowing of the yield gap with S-REITs.
♦ Our belief is supported by narrowing yield gap between M-REITs and S-REITs as well as between MREITs and risk free debt. In view of a buoyant stock market and a new “norm” that is taking shape with the rising relative investability of M-REITs vis-Ã -vis S-REITs, we expect M-REIT yields to soon revisit the lows of 6.8-7.0% pre-crisis level.
♦ We are maintaining Overweight stance on M-REITs due to: (1) The bright prospects of the investment property sector in Malaysia underpinned by economic growth, rising consumerism backed by a young demographic structure in Malaysia and growing tourist arrival; (2) Rising M-REITs’ relative investability visà - vis S-REITs and risk-free debt on the back of an expanding publicly traded M-REIT sector; and (3) Rising investors’ appetite for asset classes that provide a hedge against inflation such as REITs.
RHB Equity 360° (MREITS, Motor, Mah Sing, KFC, BAT; Technical: Gamuda)-23/04/2010
Tuesday, March 30, 2010
Corporate Highlights...-30/03/2010
♦ KFC Holding (M)
Visit Note : Upbeat on Growth Prospects
♦ SP Setia
News Update : Buys Land In Australia
♦ Market Technical Reading
Daily Trading Strategy : Trading Sentiment To Remain Upbeat...
Corporate Highlights...-30/03/2010
Visit Note : Upbeat on Growth Prospects
♦ SP Setia
News Update : Buys Land In Australia
♦ Market Technical Reading
Daily Trading Strategy : Trading Sentiment To Remain Upbeat...
Corporate Highlights...-30/03/2010
KFC Holding (M) Berhad : Upbeat on Growth Prospects
Malaysia - more aggressive expansion… As at end FY09, KFCH operated 475 KFC restaurant outlets in Malaysia, including 29 drive-through outlets (9 was added in FY09). Going forward, management plans to open about 40 new outlets per year in FY10-12, which will be focused on small towns and East Malaysia, including 4-5 drive-through outlets. We opine that the drive-through outlets are essential, given the rising “on-the-go” lifestyle habits of consumers, especially in urban areas, as well as to maintain its competitiveness against its closest competitor with 37 drive-through outlets.
KFC Holding (M) Berhad : Upbeat on Growth Prospects
KFC Holding (M) Berhad : Upbeat on Growth Prospects
RHB Equity 360° (KFC, SP Setia; Technical: WTK) - 30 March 2010
Top Story : KFC – Upbeat on growth prospects Outperform (up from MP)
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♦ Management plans to open about 40 new outlets per year in FY10-12, which will be focused on small towns and East Malaysia. As this is a more aggressive network expansion target than earlier guided (of 20-30 outlets p.a.), we have raised our FY10-12 new outlet assumptions in Malaysia to 40 p.a. from 20-30
outlets previously.
♦ Management seems more upbeat on prospects now given that SSS for YTD Feb FY10 has been growing at approximately 10%, which is significantly above our forecasts of 4% p.a.. As such, we are raising ourSSS projections to 7% p.a. for FY10-12.
♦ We understand that one outlet is now scheduled to be opened in Pune on 31 Mar and another in Mumbai in the first week of April. We believe the long-term potential for the India market continues to be exciting, as we expect growth to be strongly backed by the approximately 19.1m combined population in both ities,coupled with potential SSS growth of over 20% p.a. (which is based on the SSS growth achieved by the existing KFC restaurants operated by other franchisees in India).
♦ All in, our FY10-12 forecasts are raised by 9-15.8%. Given the marked improvement in earnings prospects as the company becomes more aggressive in its growth plans, as well as better growth trajectory from the recovering economy, our fair value has been lifted to RM9.63 (based on unchanged 12.5x FY10 PE, 14 discount to consumer sector PE of 14.5x) from RM8.84 previously. Upgrade to Outperform.
RHB Equity 360° (KFC, SP Setia; Technical: WTK) - 30/03/2010
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♦ Management plans to open about 40 new outlets per year in FY10-12, which will be focused on small towns and East Malaysia. As this is a more aggressive network expansion target than earlier guided (of 20-30 outlets p.a.), we have raised our FY10-12 new outlet assumptions in Malaysia to 40 p.a. from 20-30
outlets previously.
♦ Management seems more upbeat on prospects now given that SSS for YTD Feb FY10 has been growing at approximately 10%, which is significantly above our forecasts of 4% p.a.. As such, we are raising ourSSS projections to 7% p.a. for FY10-12.
♦ We understand that one outlet is now scheduled to be opened in Pune on 31 Mar and another in Mumbai in the first week of April. We believe the long-term potential for the India market continues to be exciting, as we expect growth to be strongly backed by the approximately 19.1m combined population in both ities,coupled with potential SSS growth of over 20% p.a. (which is based on the SSS growth achieved by the existing KFC restaurants operated by other franchisees in India).
♦ All in, our FY10-12 forecasts are raised by 9-15.8%. Given the marked improvement in earnings prospects as the company becomes more aggressive in its growth plans, as well as better growth trajectory from the recovering economy, our fair value has been lifted to RM9.63 (based on unchanged 12.5x FY10 PE, 14 discount to consumer sector PE of 14.5x) from RM8.84 previously. Upgrade to Outperform.
RHB Equity 360° (KFC, SP Setia; Technical: WTK) - 30/03/2010