Maybank initiates Buy on Berjaya Food

“We like Berjaya Food as a growth stock, backed by its major expansion plans and new markets potential (i.e. FMCG and concept stores). Current valuation of 23.4x CY16 FD PER is decent versus the domestic consumer sector average of 18.6x and Starbucks Corp’s (US) 32x given its anticipated rapid earnings growth relative to the consumer sector’s tepid two-year growth of 4%,” it said.