“We believe this will be positive for Food Empire as its current office is underutilised and the sale will help to reduce debt, shore up its balance sheet, while boosting its cash position and record a sizable one-off gain of $20.54 million,” Seet writes in his July 5 report, noting that none of the group’s production is done in Singapore.
RHB analyst Jarick Seet has maintained his “buy” call on Food Empire Holdings with a target price of $0.95, representing an 83% upside of the counter’s price of 52 cents on July 5 and a yield of 4%.
The reiteration comes off the back of Food Empire’s sale of its industrial office at Harrison Road to a Lian Beng Group subsidiary for $49.25 million.
