William Tng, an analyst from CGS International, reiterated the Buy rating on Food Empire Holdings Limited. The associated price target remains the same with S$4.00.
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William Tng has given his Buy rating due to a combination of factors, primarily the company’s stronger‑than‑expected top‑line performance and solid profitability versus market expectations. Food Empire’s FY25 revenue exceeded both his forecast and consensus, while core earnings, backed by healthy gross margins and dividends, demonstrated resilience and confirmed that the business is expanding on a sound footing.
He also sees attractive medium‑term earnings visibility, driven by new production capacity in Kazakhstan and an expected recovery and optimisation in Southeast Asia, particularly in food ingredients and snacks. On valuation, his target price implies a premium to global coffee peers but still a discount to broader beverage names, which he views as justified by Food Empire’s superior earnings growth profile and dividend yield, with further upside from margin improvement and any easing of geopolitical risks in its key Russian market.
In another report released today, DBS also maintained a Buy rating on the stock with a S$3.65 price target.