Brahim's Holdings Bhd

Brahim's Holdings Bhd

Postby winston » Sat Jan 04, 2014 6:59 pm

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IN-FLIGHT caterer Brahim’s Holdings Bhd has a two-pronged catalyst moving forward. First, it is exploring ways to increase its market share in the global halal food market, and second, it aims to become the third player to control the Malaysian sugar market.

The company’s core business is airport-centric, focusing on the provision of in-flight catering and restaurant operations. Brahim’s, through its subsidiary, holds a concession with Malaysia Airlines for the provision of in-flight catering and related services.

Analysts have likened Brahim’s business as a proxy to the vibrant airline industry minus the baggage of ticket price war and jet fuel price fluctuations. Currently, close to 90% of its revenue comes from its catering business.

Brahim’s bought a 60% stake in Admuda Sdn Bhd. Admuda has a licence from the International Trade and Industry Ministry to manufacture refined sugar and molasses for Sabah and Sarawak. The licence awarded to Admuda was the third by MITI in 37 years as sugar is a regulated commodity.

Brahim’s is looking to dominate these states by 2015 with the setting up of a RM150mil sugar refinery factory in the Demak Laut Industrial Park in Kuching.

Presently, the sugar market in Malaysia is controlled by Felda Global Ventures Holdings Bhd’s unit, MSM Malaysia Holdings Bhd, and Central Refinery Sdn Bhd, with two sugar refineries each in Peninsular Malaysia.

Brahim’s refinery will have the capacity to produce up to 180,000 tonnes of refined sugar per annum with a potential to expand to 400,000 tonnes.

An analyst from Hong Leong sees Brahim’s pre-tax profit growing 12% to RM57.8mil in FY14 and 32.4% to RM76.5mil in FY15.

Meanwhile, an analyst from Alliance is forecasting Brahim’s pre-tax profit to grow 26.5% to RM64.9mil and 23.6% to RM80.2mil in FY15.

For the nine months to Sep 30, 2013, net profit jumped 163.6% to RM10.19mil while revenue rose to RM285.7mil from RM7.4mil previously.

Catalysts:

- Sustainable earnings from long-term concession agreements.

- Further activities in the sugar refinery business.

- Maiden dividends.

Risks:

- Slowdown in passenger movements.

- Termination of concession agreements.

- Earnings highly dependable on economic conditions/pandemics.


Source: The Star
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Brahim

Postby winston » Mon Sep 15, 2014 9:46 pm

Brahim's up on talks of buying Burger King franchise BY NADYA NGUI

KUALA LUMPUR: Shares of Brahim's surged at mid-morning on Monday after reports said the group was in talks with Ekuiti Nasional Bhd (Ekuinas) to buy the latter’s Burger King (BK) franchise.

At 11am, its shares jumped 13 sen to RM1.37 with some 5.27 million shares traded between RM1.28 and RM1.39.

The FBM KLCI, however, fell 10.18 points to 1,845.46. Turnover was 824.75 million shares valued at RM420.49mil. There were 159 gainers, 491 decliners and 237 counters unchanged.

Hong Leong Research said it was surprised by the reported news and believed that it was sensible for Brahim’s to take the initiative to acquire BK as it would allow Brahim’s to diversify its earnings away from MAS.

Pricing, however, has not been revealed at this juncture.

"We also strongly opine that Brahim’s would be eyeing for more M&A opportunities in either F&B or airline catering business segment, diversifying and expanding its foothold internationally," it said.

The research house has remained Brahim's target price at RM1.62 based on FY15’s 13.5 times P/E and seven times EV/EBITDA, a 20% discount to peers.

"We upgrade our recommendation to Buy given the recent share price retracement," it said.

Source: The Star
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Re: Brahim's Holdings Bhd

Postby winston » Sun Jan 03, 2016 9:25 am

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AZLAN HUSSIN
CEO of MIDF Amanah Asset Management Bhd
Stock pick: Brahim’s Holdings Bhd

BRAHIM’S Holdings Bhd is involved in the food and beverage (F&B) business with its main contribution coming from the airline in-flight catering business.

The airline catering industry is a highly regulated industry due to the health and safety requirements and the Malaysian market is practically dominated by Brahim’s.

Due to the restructuring exercise taking place at Malaysia Airlines, Brahim’s earnings were affected as new contracts entered into were less favourable than before. This resulted in a selldown of Brahim’s shares.

Still, Brahim’s unique niche position in this industry allows them to focus on the provision and supply of halal meals. A key “game changer” for the group is the emergence of Singapore-listed SATS Ltd as a new strategic shareholder. Brahim’s should be able to leverage and benefit from the “halal-hub” position Malaysia is pushing for and from other government initiatives, especially in the tourism segment. We expect the potential for cost-benefit efficiencies of Brahim’s to improve further moving forward with their new business model.

Brahim’s is currently trading at a price-to-book ratio of 1.1 times which is reasonable given that its regional and global peers trade in the 2-3 times range albeit with a much larger footprint in the in-flight catering business.

Earnings are expected to recover from losses this year and should help support a re-rating of Brahim’s as it heads towards a recovery in 2016. We believe it offers an excellent opportunity to enter the market at a very attractive level.

Source: The Star
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Re: Brahim's Holdings Bhd

Postby winston » Fri Mar 01, 2019 10:40 am

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Brahim’s tumbles 61% after lapsing into PN17 status

KUALA LUMPUR (March 1): Brahim’s Holdings Bhd (BHB) shares tumbled 61% this morning after it lapsed into Practice Note 17 (PN17) status, after its shareholder equity fell below the 25% threshold.

At 9.02am, Brahim’s lost 12.5 sen to 8 sen with 496,600 shares done.

The catering services provider said it is now an affected listed issuer with risks of being delisted.

“Based on the unaudited interim financial results of BHB for the fourth quarter ended Dec 31, 2018, the shareholders’ equity of BHB on a consolidated basis of less than RM40 million represented 25% or less of its issued capital. Hence, BHB is now regarded as a PN17 company,” read the filing.

BHB said it has 12 months from now to submit a regularisation plan to the Securities Commission (SC) and implement it within a timeframe stipulated by the SC or Bursa Securities thereafter.

Source: The Edge

https://www.theedgemarkets.com/article/ ... n17-status
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Re: Brahim's Holdings Bhd

Postby winston » Fri Mar 01, 2019 10:47 am

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Brahim's slumps 26.8% after Tabung Haji exits as major shareholder

by Surin Murugiah

January 02, 2019

KUALA LUMPUR (Jan 2): Brahim's Holdings Bhd shares slumped 26.8% at mid-morning today, as Lembaga Tabung Haji continued to transfer its underperforming equities to the special purpose vehicle under the Ministry of Finance.

Filings with Bursa Malaysia on Dec 31 showed that the pilgrim fund had transferred its shareholdings in Brahim's to Urusharta Jamaah Sdn Bhd.

Tabung Haji had transferred 45.55 million shares in Brahim's to Urusharta Jamaah, and ceased to be a substantial shareholder in the firm.

Source: The Edge

https://www.theedgemarkets.com/article/ ... hareholder
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Re: Brahim's Holdings Bhd

Postby winston » Fri Mar 01, 2019 10:51 am

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Brahim sinks deeper into net loss in 2Q

August 30, 2018

KUALA LUMPUR (Aug 30): Brahim’s Holdings Bhd's net loss widened to RM3.16 million in the second quarter ended June 30, 2018 (2QFY18) from RM2.02 million a year ago, as the performance of its in-flight catering and related services operating segment continues to decrease.

This resulted in a larger loss per share of 1.18 sen for 2QFY18 compared with 0.85 sen for 2QFY17. Quarterly revenue dropped 7.4% to RM64.42 million from RM69.53 million a year ago.

In a filing with Bursa Malaysia today, Brahim’s revealed that the in-flight catering and related services segment recorded an operating loss of RM4.27 million in 2QFY18 compared with an operating profit of RM1.5 million a year ago. The segment's revenue also fell 7% to RM62.3 million from RM67.28 million in 2QFY17.

No dividend has been proposed during 2QFY18.

The weaker quarterly performance dragged the group's net loss for the cumulative six months (1HFY18) down further by 37.2% to RM5.31 million from RM3.87 million a year ago, while revenue fell 5.5% to RM133.09 million from RM140.88 million in 1HFY17.

On prospects, Brahim’s said the outlook for its in-flight catering and related services segment in 3QFY18 is expected to be tough.

"Based on the data provided by Malaysia Airports Holdings Bhd, passenger traffic continue to be consistent with the previous quarter and expected to continue the same throughout the whole year.

"Nevertheless, with top management changes, new directions and business strategies set and executed accordingly, (it) will then result in a recovery of this business segment," it added.

Brahim’s said its non-airline business will be streamline and rationalise to reflect its significant to this segment.

On its food and beverage segment, Brahim’s said it is still reviewing the market segment prospects. "A series of discussions has been done to determine the suitable business module as well as the appropriate business location," it added.

As for its logistics segment, the group said it continues to be consistent and maintaining its performance.

"This segment is still looking into expanding business models by promoting other related and support businesses and expanding its operations by acquiring new customers and businesses. Apart from that, the segment will also continue to streamline its variable cost," it added.

Brahim’s shares closed unchanged at 30.5 sen today, with 404,800 shares done, bringing a market capitalisation of RM72.07 million.

Source: the Edge

https://www.theedgemarkets.com/article/ ... et-loss-2q
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Re: Brahim's Holdings Bhd

Postby winston » Fri Mar 01, 2019 10:57 am

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Brahim's to focus on mobile cafes

Friday, 6 Apr 2018

KUALA LUMPUR: The Brahim's group of companies will expand the number of mobile cafes and grow its food original equipment manufacturer segment, as part of its key growth strategy this year.

Brahim's Holding Bhd executive chairman Datuk Seri Ibrahim Ahmad Badawi said the brand was leading the way in halal and meals ready-to-eat convenient food.

“The company is running a prototype and has started to engage consumers in Klang Valley.

“By year-end, we are targeting to have three to five mobile cafes,” he told a media briefing at the Brahim's booth on the sidelines of the Malaysia International Halal Showcase 2018 here yesterday.

Source: Bernama

https://www.thestar.com.my/business/bus ... AUDWBwD.99
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Re: Brahim's Holdings Bhd

Postby winston » Fri Mar 01, 2019 10:59 am

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Brahim's inks ETS catering deal with KTMB

Thursday, 25 Jan 2018

KUALA LUMPUR: Brahim’s Holdings Bhd has entered into an agreement with Keretapi Tanah Melayu Bhd (KTMB) to provide on-board food and beverages catering services on all electric train services (ETS) operated by KTMB.

The company, in a filing with Bursa Malaysia today said the agreement also include operation of Rail Cafe at select train stations and terminals, as well as to renovate and make good the new catering kitchen hub in Butterworth and Kuala Lumpur stations.

Brahim’s, however, did not disclose the value of the deal.

“The agreement is expected not to have any material effect on the earnings and net assets per share of the Brahim’s group for the financial year ending Dec 31, 2018,” it said.

Source: The Edge

https://www.thestar.com.my/business/bus ... lxkhTBk.99
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Re: Brahim's Holdings Bhd

Postby winston » Sat Mar 02, 2019 8:10 am

Brahims closes sharply lower after triggering PN17

In FY18, Brahim's posted net losses of RM116.05mil compared with losses of RM2.16mil in FY17.

KUALA LUMPUR: Brahim's Holdings Bhd's share price fell to an all-time low of 5.5 sen on Friday after the catering services company was classified as a Practice Note 17 company.

It closed at 11.5 sen, down nine sen or 44%, with 20.37 million shares done.

The plunge saw RM21.26mil wiped out from its share price at the close of market, based on its shares out of 236.28 million shares.

On Thursday, Brahim's announced that it was a PN17 company after it had triggered the prescribed criteria under Paragraph 2.1 (a) of PN17.

Based on the unaudited interim financial results for the fourth quarter ended Dec 31, 2018, the shareholders’ equity on a consolidated basis of less than RM40mil represented 25% or less of its issued capital.

The company now has to regularise its financial condition within 12 months or face the prospects of being delisted.

In FY18, it posted net losses of RM116.05mil compared with losses of RM2.16mil in FY17.

In Q4, it posted net losses of RM93.79mil compared with net losses of RM1.99mil due to impairment of goodwill of RM88.61mil. It only has cash of RM6.48mil.

Brahim's said the impairment on goodwill was recognised by the group in relation to its in-flight catering and related services segment of RM88.61mil in Q4 FY18.

Source: The Star

https://www.thestar.com.my/business/bus ... WzUjPYd.99
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Re: Brahim's Holdings Bhd

Postby winston » Wed Mar 06, 2019 8:10 am

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Brahim's takes steps to exit PN17 status

by Zunaira Saieed

KUALA LUMPUR: Brahim’s Holding Bhd (BHB) is gearing up to exit Practice Note 17 (PN17) status after lapsing into it last week.

The catering services provider said the company will review its capital and business structure in line with complying with the listing requirements.

“The company will also push key initiatives to drive operational improvement and productivity enhancements following a board and management review to rejunivate its consolidated financials,” BHB said in a press release.

The company also seeks to submit a regularisation plan within the next three months following consultations with prospective principal advisers.

“The company wishes to assure all its shareholders, customers, suppliers, joint ventures and employees that its business at operations level is not affected by this status,” it said.

Source: The Star

https://www.thestar.com.my/business/bus ... IuMLw8V.99
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