"We expect this to lend support to our margin projection going forward. Food Empire continues to track well with our estimates," says Yeo, who has kept his "buy" call, noting that the stock is trading at a "compelling" PEG of less than 1, with its forward P/E of 16x below his 19% FY25-28F earnings growth CAGR.
Alfie Yeo of RHB Bank Singapore has maintained his positive view on Food Empire Holdings, given how the company is well poised to capture growth ahead as it increases manufacturing capacity across various sites.
In addition, the company's cost pressure is seen to ease somewhat with coffee prices down by around a quarter year to date, on better anticipated supply, harvest, and weather outlook from key production countries including Brazil and Vietnam.
