{"id":324809,"date":"2023-09-07T13:23:23","date_gmt":"2023-09-07T05:23:23","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=324809"},"modified":"2023-09-07T13:23:25","modified_gmt":"2023-09-07T05:23:25","slug":"stock-in-focus-jollibee-foods-corp-jfc-7-sept-2023-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-jollibee-foods-corp-jfc-7-sept-2023-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Jollibee Foods Corp. (JFC) – 7 Sept 2023 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>JFC<\/td><\/tr>
Company Name<\/strong><\/td>Jollibee Foods Corp. <\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>7 Sept 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 265.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We maintain our target price (TP) of Php265.00 and reiterate our BUY recommendation for JFC as we expect the firm to sustain and grow its topline on account of better economic conditions, continued store expansion and recent acquisitions. Our TP offers a potential share price upside of 12.9% and a total return potential of 13.9%, which includes our 2023 dividend yield of 1.0%.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

High expectations<\/strong><\/p>\n\n\n\n

We expect Jollibee Foods Corp.’s (JFC) to deliver a better performance in 2nd half (2H) 2023 despite recording lower earnings in the 1st half (1H) 2023 due to one-off gains. We expect JFC to continue to deliver double-digit topline growth supported by its store network expansion, which already exceeds company guidance at 5.1% growth. We also expect its recent acquisitions to bolster growth; (1) completion of acquiring 60% of Meko Holdings, and (2) opening Tiong Bahru Bakery and Common Man Coffee Roasters chains in the Philippines within the year.<\/p>\n\n\n\n

Earnings recap<\/strong><\/p>\n\n\n\n

JFC recorded a 17% decline in 2nd quarter (2Q) 2023 attributable net income to Php2.3 billion, which brought its 1H 2023 attributable net income 14% lower to Php4.4 billion. Ex-one off gains from land conveyance and sale of land properties last year, 2Q 2023 attributable net income would have been 34.6% higher. <\/p>\n\n\n\n

System wide sales (SWS) grew by 16.9% in 2Q 2023 to Php85.5 billion and 23.3% in 1H 2023 to Php164.1 billion. Revenues increased similarly to the SWS at 16.8% to Php60.8 billion in 2Q 2023 and 22.1% to Php115.9 billion. Meanwhile, 2Q23 EBITDA came 7% higher to Php8.3 billion, while 1H 2023 EBITDA ended 7% higher to Php15.9 billion. 2Q 2023 operating income climbed 31% to Php4.0 billion and brought its 1H 2023 operating income 51% higher to Php7.6 billion.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>