Wednesday, May 23, 2012

KFC Holdings (Malaysia): Maintain Hold - Unappealing side dishes

Within expectations. KFC's 1Q12 net profit of MYR32.5m was within expectations, at 20% of our and consensus full-year estimates. All segments recorded pretax losses except KFC Malaysia. There is no change to our earnings forecasts. The general offer price of MYR4.00 implies a prospective 2013 PER of 18.1x, a 51% premium to KFC’s historical PER mean of 12x since 2005. Pricing is decent, in our view, and investors should accept the general offer.

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Source: Maybank Research - 23 May 2012

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