- Johor Corp’s (JCorp) president and chief executive
Kamaruzzaman Abu Kassim said the proposed privatisation of KFC Holdings (KFC)
and QSR Brands Bhd (QSR) is on track and that there are no objections from Yum!
Brands, according to local dailies.
- It is understood JCorp has been actively briefing the
owner of the KFC franchise, Yum! Brands, in arriving at the current terms of
understanding, but has yet to make a formal application.
- Nevertheless, we see this development as a positive sign.
As it is, JCorp’s president is confident of concluding the privatisation
exercise by the year-end after a longer-than- expected delay.
- On a separate matter, JCorp is looking at raising RM3bil
through the issuance of “sukuk wakalah” Islamic bonds with a guarantee from the
federal government.
- The proceeds will be used to settle JCorp’s debt
repayments due in July 2012.
- KFC recently launched a new marketing campaign based on a
thematic extension of its “So Good’ tagline at a RM4mil investment cost. The
group expects the A&P drive to boost sales by 10%-15% in 2QFY12.
- KFC has allocated a RM63mil capex for KFC restaurant
outlet expansion this year. The group will be adding 15 new outlets in Malaysia
and 9 in India, for which we have taken into account into our earnings forecast
model.
- Maintain BUY with an unchanged fair value of RM4.15/share,
based on a fair PE of 18x FY13F earnings. We like the group’s high cash
generative food business model on the back of an established global brand
equity, with stable restaurant sales in Malaysia and exciting growth prospects
in India.
Source: AmeSecurities
No comments:
Post a Comment