{"id":332937,"date":"2025-06-19T00:08:39","date_gmt":"2025-06-18T16:08:39","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=332937"},"modified":"2025-06-19T00:08:41","modified_gmt":"2025-06-18T16:08:41","slug":"stock-in-focus-jollibee-foods-corp-jfc-19-june-2025-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-jollibee-foods-corp-jfc-19-june-2025-by-ap-securities\/","title":{"rendered":"Stock in Focus: Jollibee Foods Corp. (JFC) – 19 June 2025 by AP 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>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>19 June 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 335.28<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Although JFC has set expectations that China segment\u2019s losses will ultimately be continuing into 2025, they expect losses to gradually 0narrow and for the segment to eventually breakeven or even income positive by 2026. Despite company guidance for possibly two more years of losses for its China segment, we believe that growth in its other segments is more than enough to offset underperforming segments. With this, we reiterate our BUY rating on JFC with a Target Price of P335.28.<\/p>\n\n\n\n

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

China shows little signs of consumer pickup<\/strong><\/p>\n\n\n\n

A report released on Monday, June 16, showed that China retail sales jumped 6.4% from a year earlier in May, sharply beating 5% growth estimates and accelerating from the 5.1% growth in the previous month. However, it may be a while before there is sustainable growth as multiple analysts have pointed to stagnating income as the main factor for the weak demand in consumer goods despite four consecutive months of disinflation, with disposable income growth down to an
average of 5% per annum or half the pre-pandemic growth rate. <\/p>\n\n\n\n

Saving and spending on value for money products<\/strong><\/p>\n\n\n\n

In a quarterly survey conducted by the People\u2019s Bank of China released in March, 61.4% of Chinese households reported in 4Q 2024 that they preferred saving money over spending or investing. This marked a continuation of a trend seen since late 2023, with over 60% of respondents consistently favoring saving. While this reflects a cautious consumer mindset, a separate report by Worldpanel and Bain & Company offered a different perspective: although the average selling price of goods declined by 3.4% last year, overall sales volume in China rose by 4.4%, indicating that consumers leaned toward more affordable products and companies ramped up promotional efforts to sustain sales volumes.<\/p>\n\n\n\n

JFC remodels its value segment in China<\/strong><\/p>\n\n\n\n

As of 1Q 2025, JFC has rolled out the super value store model across 300 of its China locations. The new menu and price positioning has resulted into its transaction count going up by 34% and boosting average daily sales by 24%. As a result, the China segment saw flat same-store sales growth (SSSG) in April, which is an improvement from the high single-digit to low double-digit contraction in recent periods. <\/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>