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KGI upgrades Japan Foods to 'outperform' on resilient business model, better days ahead

Atiqah Mokhtar
Atiqah Mokhtar7/1/2021 11:21 AM GMT+08  • 4 min read
KGI upgrades Japan Foods to 'outperform' on resilient business model, better days ahead
KGI raised its TP for Japan Foods to 65 cents from 46 cents previously.
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KGI Securities believes that Japan Foods Holding has emerged from the pandemic stronger and primed for better days ahead, prompting analyst Joel Ng to upgrade his call to “outperform”, with a higher target of 65 cents from 46 cents previously.

Ng commends Japan Foods’s adaptability throughout the pandemic, noting it operated only 13 restaurants at the start of the circuit breaker last year catering to takeaways, before increasing this to 30 in restaurants in May 2020.

While the company had to close 9 restaurants due to the Covid-19 impact and currently operates a total of 50 eateries as of March, Ng highlights that Japan Foods took the opportunity to launch two new brands, including its first foray into halal-certified eateries under the “Tokyo Shokudo” brand.

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