PETALING JAYA: Despite losses narrowing in the first half of 2026 (1H26) for Berjaya Food Bhd
(BFood), analysts are uncertain about the consumer group’s outlook in the near term.
In a report, CIMB Securities Research said it expects larger losses for BFood in 2H26 on the back of intense competition and potentially higher marketing spending.
According to the research firm, these factors coupled with a challenging operating environment and competition will likely continue pressuring revenue growth and margins, while operating expenses may rise should BFood step up its marketing and promotional activities to defend its market position.
BFood’s 1H26 revenue grew 2.9% year-on-year mainly from higher contributions from overseas operations, which in turn, offset the weaker revenue from Malaysia after its non-performing stores shut.
“Encouragingly, we understand that Malaysian operations recorded positive same-store sales growth in 2Q26. Core net loss narrowed to RM11.9mil supported by store optimisation, tighter cost controls and a 14.5% quarterly decline in depreciation following store closures,” it said.
CIMB Research said it maintains financial year 2026 (FY26) to FY28 earnings per share estimates, while reiterating its “reduce” call on the group with a target price of 20 sen.
“In our view, BFood’s current valuation, at three times calendar year 2027 price-to-book-value, has yet to account for our expectations of continued losses through FY26 to FY28 and a challenging operating landscape.”
Meanwhile, Hong Leong Investment Bank (HLIB) Research said it will cease coverage on BFood as it lacks clear near-term catalysts and limited management access.
In a report, the research house said even with losses decreasing, earnings are still firmly in the red which will extend its losing streak.
“We believe a return to profitability will take time given the still challenging demand environment,” it noted.
At the same time, HLIB Research noted the gaining popularity of China-based coffee chains have constrained Starbucks from regaining its market share.
