Stock Analysis: Food Empire Holdings | Lianhe Zaobao
Food Empire Holdings reported a 28% year-on-year revenue growth in the third quarter, reaching RMB 153 million, exceeding expectations. The company achieved double-digit growth in key markets, indicating strong demand. Daiwa Capital Markets maintains a buy recommendation with a target price of RMB 3.00, currently priced at RMB 2.62. Revenue forecasts for the fiscal years 2025 to 2027 have been raised by 2% to 3%, with a price-to-earnings ratio of 16.5 times for the fiscal year 2026, at a 35% discount compared to regional peers
Food Empire Holdings
- Recommendation: Buy
- Target Price: 3.00 SGD
- Closing Price: 2.62 SGD (+2.34%)
Food Empire Holdings released its third-quarter business report, which only provided revenue data. Third-quarter revenue increased by 28% year-on-year to SGD 153 million, bringing the revenue for the first nine months to 81% of our forecast for the full year, exceeding expectations. The company achieved double-digit year-on-year revenue growth rates in all major markets, demonstrating sustained support from demand. We have raised our revenue forecasts for the fiscal years 2025 to 2027 by 2% to 3%.
We maintain our buy recommendation for this stock, with a target price of 3.00 SGD. Food Empire Holdings shares are currently trading at a forecasted price-to-earnings ratio of 16.5 times for fiscal year 2026, which is a discount of up to 35% compared to the regional industry average of 24.7 times. (UOB Kay Hian)
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