In a report released today, John Cheong from UOB Kay Hian upgraded Food Empire Holdings Limited (F03 – Research Report) to a Buy, with a price target of S$1.20.
John Cheong has given his Buy rating due to a combination of factors, primarily driven by Food Empire Holdings’ impressive financial performance in 2024. The company reported a core profit of US$50 million, which, despite being an 11% decrease year-over-year, exceeded expectations by 8%. This was achieved through a record-high revenue growth of 12% year-over-year, attributed to the company’s successful diversification strategy and increased focus on the rapidly expanding Asian markets.
Moreover, Food Empire Holdings has demonstrated strong growth across various regions, with Southeast Asia, South Asia, and the CIS regions showing significant double-digit growth. The company’s strategic pricing adjustments and new product launches have also contributed to its robust performance. Additionally, the declaration of a final and special dividend, resulting in a higher-than-expected yield, further supports the positive outlook, leading to an upgraded target price of S$1.20 and a Buy recommendation.
According to TipRanks, Cheong is ranked #1514 out of 9385 analysts.