KUALA LUMPUR: Hong Leong Investment Bank (HLIB) Research sees brighter days ahead for Brahim's Holdings Bhd fter three sequential years of misfortunes and shady profit prospects.
It said on Thursday the marking of the "new providing food understanding" and passage of vital accomplice SATS, positive dinners volume standpoint in the midst of promising air travel request combined with the progressive change in non-flying cooking fragment, have lit up the profit viewpoint for Brahim's.
HLIB Research expects Brahim's FY17-19 center income to develop by 23% intensified yearly development rate (CAGR) to RM15.2mil.
It kept up a Trading Buy rating on Brahim's with a 98 sen target cost (or 28% upside), getting from a 16 times FY18 EPS of 6.1sen, speaking to a 27% rebate to SATS (claims a 49% stake in Brahims Catering) FY18 PE of 22 times.
Close term re-rating impetuses are securing the Rapid providing food contract and kitchen office rental waiver (not attributed in HLIB Research FY17 gauges), which administration guided to emerge in 2H17.
"Accepting Brahim's secures both arrangements, we gauge FY17 benefit after assessment and minority enthusiasm to be supported by 117% to RM21.5mil or 9.1 sen a share (from 4.2 sen)," it said.
In the wake of tumbling 40% from 52-week high of RM1.07 (May 24, 2016) to a low of 64.5 (Jan 4, 2017), Brahims' share costs organized an alleviation rally as high as 87.5 sen (Feb 14) preceding remembering to 76.5 sen on Wednesday.
"Actually, its short and long haul standpoint stays empowering as uptrend bolster incline lines stay in place and we trust the stock is ready for a close term downtrend resistance breakout, as pointers are recuperating.
"A conclusive breakout above every day downtrend line close to 78 sen may goad share costs higher towards 83 sen (200-day SMA) and 87.5 sen, before testing our LT objective at 94.5 sen (Aug 9 high).
"On the other side, key backings are arranged at 72.5 sen (50-d SMA) and 70 sen mental support. Cut misfortune at 69 sen," it said.
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