HERFY FOOD SERVICES (SA), a company active in the Restaurants & Bars industry, reduced its market risk and raised its general evaluation. The independent financial analyst theScreener awarded an improved star rating to the company, which now shows 2 out of 4 possible stars; its market behaviour has improved and can be considered as defensive. theScreener believes that this new assessment merits an overall rating upgrade to Slightly Positive. As of the analysis date February 4, 2022, the closing ...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Long way to full recovery. Suspending dine-in services for 11 weeks and closing 68 mall branches since 15 March weighed on 9M20 earnings (-78% y-o-y). While we look for a c2.3x y-o-y rebound in 2021e EPS, we only expect recovery to pre-crisis levels by 2023e, pressured by the step-up in costs. Spending rationalisation also positions Herfy in a tight spot, forcing it to offer more promotions, especially with the narrowing price gap compared to peers (vs. the cheapest previously). That said, we do...
Stimulating demand, but at the expense of margins. Herfy’s restaurant sales picked up in October, post the launch of a more-affordable menu (SAR4–14/sandwich vs. avg. of SAR14). Herfy offered these promotions on weak 9M17 traffic (revenue ↓2% y-o-y on 33 more branches), which will affect margins negatively, in our view. We cut 2018-21e EBITDA margins and restaurant yields by an average 2.1pp and 9%, respectively, on delay in maturity of branch additions and margin recovery. We remain Neutral on ...
Initiate at Neutral, TP of SAR87/share. Spending rationalisation position Herfy ahead of competitors among low and mid-income families due to its affordability (avg. meal is SAR18 vs. SAR15-25 for McDonald’s). Herfy historically refrained from outright price increases and we expect a continued drop in restaurant yields (↓11% y-o-y in 1Q17), albeit at a lower rate (-3.9% in 2017e and +0.4% in 2018e), on branch cannibalisation in the central region (62% of revenue). Herfy trades on 2017e and 2018e...
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