COMMENTS ON BRAHIM’S HOLDINGS BERHAD (9474)

FIGURE 1: BRAHIM’S HOLDINGS BERHAD LAST 5 YEARS SHARE PRICE TREND

**analysis based on 2017 annual report.

1.       GENERAL INTRO: This counter core business is on in-flight catering to over 33 international airlines and operating airport restaurants at KLIA, LCCT and Penang Airport.

2.       NOTABLE POINTS:

a.    Malaysia's leading HALAL in-flight catering company, produces an average of 52,000 meals per day, catering over 200 flights daily.

b.    also provide cabin handling services such as laundry services for pillows and blankets, filling the cabin trolley with items for inflight sales, as well as providing passengers with headsets, newspapers and magazines.

c.     known to be the world's largest halal inflight kitchen and has won many international awards for quality and excellence.

d.    company moving towards to be less dependent on the airline catering business, shift to emphasise on non-airline catering business, such as airport restaurants / food courts operation, corporate clients institutions such as universities and hospitals.

3.       IS THIS COUNTER A STRONG GROWTH STOCK? 

a.       REVENUE RANGE (million): ~291.5 million in 2017 annual report, this is a low to medium revenue company.

b.      SHARE PRICE: last few years share price on decreasing trend, dropped from ~RM2.70 in 2014 to current share price of ~RM0.20.

c.       EARNING PER SHARE (EPS): earning per share in last 5 years are fluctuating, EPS were 10.12, -13.64, -6.64, -31.72, -2.94 sen per share, respectively, making losses in 4 out of 5 years.

d.      FUTURE POTENTIAL/PROSPECTS: need improved cost control / saving measures to return back to profitability

e.      CAPITAL EXPENDITURE (CAPEX): spending on purchase of new fixed assets is 6.1 million, around 1.6% of total assets.

4.       IS THIS A STRONG DIVIDEND STOCK?     

a.       DIVIDEND YIELD: in 2017 report, dividend payout declared

b.      CONSISTENCY: no dividend payout declared since 2015

5.       OTHER INDICATORS:

a.       CASH FLOW: cash flow is positive, around 10.8 million

b.      SUPPORT BY INSTITUTIONAL INVESTORS: there is presence of 10 institutional investors at top 30 major shareholders list, including Lembaga Tabung Haji (19.28% stake), EPF, kumpulan wang persaraan and insurance companies and investment funds.

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