Year-to-date (ytd), Food Empire’s share price has risen by 130%. The analysts attribute this to the group’s resilient 2HFY2024 ended Dec 31, 2024, results despite rising coffee prices, continued strong top-line growth in the 1QFY2025, and falling coffee prices supporting an earnings turnaround.
DBS Group Research (DBS) analysts Chee Zheng Feng and Andy Sim have a fair value estimate of between $2.35 and $3.01 on Food Empire Holdings, with the midpoint being $2.68.
The analysts’ sum-of-the-parts (SOTP) valuation implies an equity value of US$1.1 billion ($1.41 billion) to US$1.4 billion on the company. “We value the company using a sum-of-the-parts approach, covering its four key business operations — East Europe branded instant coffee, snack manufacturing in Malaysia, food ingredient business in Southeast Asia and South Asia, and Vietnam branded instant coffee,” write Chee and Sim in their Aug 28 note.
