{"id":326386,"date":"2024-01-16T19:47:52","date_gmt":"2024-01-16T11:47:52","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=326386"},"modified":"2024-01-16T19:47:54","modified_gmt":"2024-01-16T11:47:54","slug":"stock-in-focus-jollibee-foods-corp-jfc-16-jan-2024-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-jollibee-foods-corp-jfc-16-jan-2024-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Jollibee Foods Corp. (JFC) – 16 Jan 2024 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>16 Jan 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 314.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We set a target price of (TP) Php314.00 for JFC based on Discounted Cash Flow (DCF) valuation driven by EBITDA. We estimate a 10-year EBITDA CAGR at 13.7% rooted in the 2024 EBITDA forecast of Php35.5 billion (+8.4% y\/y) and maintain a BUY rating. <\/p>\n\n\n\n

JFC is also trading cheaply at a Price-Earning (P\/E) ratio of 29.2x, lower than its 5-year rolling average of 51.1x, albeit higher than its closest peers\u2019 average PE of 12.6x. At a TP of Php314.00, the potential share price upside is 18.5%, and the total return potential is 19.6% including our 2024 dividend yield forecast of 1.1%<\/p>\n\n\n\n

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

2024 Outlook<\/h3>\n\n\n\n

We expect Jollibee Foods Corp. (JFC) to continue to deliver a robust performance in 2024, albeit at a lower growth owing to a high base and lack of extraordinary profits (2023 core net income expected at ~3.5x higher year-on-year (y\/y) due to 2022\u2019s one-off gains). We estimate demand to be sustained from the easing of inflationary pressures and expect the new store additions and various strategic investments (i.e. closing of PH PHO24 stores, acquisition of Meko Holdings, and opening of Tiong Bahru Bakery and Common Man Coffee Roasters chains) from last year to support 2024\u2019s growth.<\/p>\n\n\n\n

Forecast updates<\/h3>\n\n\n\n

We increased our core net income estimates for 2023\/2024 by 22%\/3% to
Php9.2 billion\/ Php10.7 billion mainly on better margins; our new core net income
estimates are 245%\/ 16% higher y\/y. <\/p>\n\n\n\n

We adjusted our sales forecast by -3%\/-6% to Php225.0 billion\/ Php243.8 billion on more moderate assumptions. EBITDA estimates rose 11%\/3% to Php32.8 billion\/ Php35.5 billion on a 14.6% margin. Operating income estimates are adjusted by +3%\/-4% to Php14.2 billion\/ Php16.7 billion on 6.3%\/ 6.9% margins.<\/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>