Japan Foods - RHB Invest 2023-12-08: Delayed Impact Of High Inflation; Downgrade To NEUTRAL

• Downgrade Japan Foods (SGX:5OI) to NEUTRAL. Japan Foods’ 1HFY24 core earnings were well below our estimates amid elevated operating costs, which we expect to sustain in 2HFY24. We also remain cautious on the FY25 profit outlook.
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Weak 1HFY24.

• Japan Foods’ 1HFY24 revenue of S$43m (+13% y-o-y) accounted for 51% of our estimates. Gross profit of S$36m (+12% y-o-y) was in line with our estimate. However, amid higher-than-estimated costs, core PATMI (excluding the one-off impairment expense) came in at S$872k (-60% y-o-y) vs our earlier full-year estimate of S$3m.
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Operating costs to remain elevated.

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Above is an excerpt from a report by RHB Securities Research.
Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.

Read also RHB's most recent report:
2024-05-29 Japan Foods - Hoping For A Better FY25.

Previous report by RHB:
2024-02-22 Japan Foods - 9MFY24 Numbers Remain Weak; NEUTRAL.

Price targets by other brokers at Japan Foods Target Prices.

Listing of research reports at Japan Foods Analyst Reports.

Relevant links:
Japan Foods Share Price History,
Japan Foods Announcements,
Japan Foods Dividend Payout Dates & Corporate Actions,
Japan Foods News