Brahim's survival hinges on the aviation industry

By ZAIDI ISHAM ISMAIL
editor@dagangnews.com

KUALA LUMPUR Nov 5 - IT is every company's nightmare to be classified as a PN17 firm. PN17 or Practice Note 17/2005 is a classification by Bursa Malaysia on financially distressed concerns.

Bursa Malaysia unveiled a list of 22 companies which are on the PN17 category earlier this week and among them are Brahim's Holdings Berhad.

Brahim's an inflight caterer has been in the doldrums ever since COVID-19 clipped the wings of the aviation sector.

Not surprisingly, Brahim's wings were also shackled in tandem with the aircrafts unable to fly due to low passenger volume.

But how long can Brahim's sustain this way without any businesses?

Is there light at the end of the tunnel for the caterer?

"Obviously Brahim's must reduce dependency on the airline sector and perhaps diversify into food delivery.

Brahim's executive chairman Datuk Seri Ibrahim Ahmad had reportedly said the firm plans to supply food to a 30-hospital chain.

If it materialises, this will definitely impact the firm positively but until that happen, Brahim's will have to bite the bullet for now until the pandemic eases," said an analyst from Maybank Research.

Speaking to DagangNews.com, the analyst added the company is poised to turn around with the allowance of inter-state travel, international flights and the picking up of the economy.

"If air travel picks up, so too will Brahim's inflight catering which is churning out about 5,000 meals right now compared to its capacity of dishing out 60,000 meals a day.

Earlier this week, Brahim's excited investors when its shares surged 14 cents to a 3-year high of 52 cents apiece on speculation that a white knight has galloped in to rescue the ailing company.

But the jubilation evaporated when no white knight appeared and its shares tumbled.

Malaysia Airlines also has a stake in Brahim's thus it is incumbent on the national airline to ensure that Brahim's remain afloat.

And ultimately, Khazanah Nasional which owns MAS may indirectly become the white knight to inject life back into MAS and ultimately Brahim's and fish it out of PN17 status. - DagangNews.com