{"id":329750,"date":"2024-10-04T00:36:34","date_gmt":"2024-10-03T16:36:34","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329750"},"modified":"2024-10-04T00:36:36","modified_gmt":"2024-10-03T16:36:36","slug":"stock-in-focus-jollibee-foods-corp-jfc-4-oct-2024-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-jollibee-foods-corp-jfc-4-oct-2024-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Jollibee Foods Corp. (JFC) – 4 Oct 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>4 Oct 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 reiterate our BUY rating for Jollibee Foods Corp. (JFC) with a target price (TP) of Php314.00 as we continue to see topline grow at records. We also believe that the company\u2019s long-term growth potential remains promising as it expands its portfolio both locally and internationally, enhances its coffee & tea business, and invests in digital transformation to boost operational efficiencies. With interest rates expected to decline until next year, JFC will benefit from expansion-related activities as they actively push for more company-owned and franchisee store openings.<\/p>\n\n\n\n

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

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

JFC posted a 1st half (1H) 2024 core net income of Php5.7 billion, up 29% year-on-year (y\/y), above consensus and our estimates. Consolidated system-wide sales (SWS) and revenues grew by 11.3% and 10.9% to Php182.6 billion and Php128.5 billion, respectively, on the back of 6.3% same- store sales growth (SSSG) and 5.1% growth from new stores. It translated to a 16.2% growth in gross profits to Php24.3 billion on an 18.9% margin expansion due to lower cost of goods. EBITDA was up 18.2% to Php18.8 billion on a 90bps margin improvement, and operating income jumped 20.6% to Php9.2 billion as margins improved by 0.5% to 7.1%.<\/p>\n\n\n\n

PH remains a champion; International business thriving<\/strong><\/p>\n\n\n\n

The Philippine business remains robust, accounting for the bulk of its 1H 2024 EBITDA (67% vs. prev. 69%) as Jollibee, Mang Inasal, and Chowking were the main growth drivers locally. On the international front, EBITDA contribution improved (33% vs. prev. 31%) as Jollibee North America, Jollibee Europe, Middle East, and Africa (EMEA), Chowking EMEA, and CBTL showed strong potential as it continues to thrive amid headwinds and offsetting weakness in China.<\/p>\n\n\n\n

20204 earnings guidance<\/strong><\/p>\n\n\n\n

We forecast 2024 revenues to expand by 15.3% to Php281.4 billion as EBIT will likely
grow double-digit this year supported by the strong PH business. Management also upgraded their 2024 EBIT growth forecast from 10%-15% to 18%-20% as better-
than-expected 1H 2024 earnings may continue. This is in-line with our 2024 forecasts of 18% EBIT growth and 19% core net income expansion to Php10.4 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>