KUALA LUMPUR, Dec 3 (Bernama) -- Hong Leong Investment (HLIB) Bank has maintained its "hold" call on Brahim's Holdings Bhd, following the company's joint venture (JV) with Australian-based Carpenter Beef Pty Ltd, for the development of the Cataby Abattoir in Perth.
The research house said it was surprised at the JV as this allows Brahim's to obtain raw material consistently and at a better pricing.
"Brahim's has also majority control of the JV. Hence, it will be able to consolidate the financials of it.
"We believe the JV will benefit Brahim's through costs savings, while enabling the group to have control over the quality of raw materials," it added in a note Wednesday.
Brahim's in-flight catering business consumes one tonne of beef weekly and its Burger King venture is evenly split between beef and chicken on its menu.
"The target price remains unchanged for now at RM1.43," HLIB said.
At 11.55 am, Brahim's share price stood at RM1.40.
-- BERNAMA
