William Tng, an analyst from CGS-CIMB, reiterated the Buy rating on Food Empire Holdings Limited. The associated price target remains the same with S$2.28.
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William Tng’s rating is based on a combination of factors that highlight the strong financial performance and strategic opportunities for Food Empire Holdings Limited. The company is expected to report significant growth in its revenue and core net profit for the first half of 2025, with revenue projected to increase by 16% year-over-year and core net profit by 27%. This robust performance is indicative of the company’s ability to maintain its market position and capitalize on favorable market conditions.
Additionally, Food Empire’s upcoming 25th anniversary as a listed company, coinciding with Singapore’s 60th birthday, presents an opportunity for the company to consider a bonus issue. Such a move could enhance trading liquidity and attract larger institutional investors, especially as the Monetary Authority of Singapore updates its Equity Market Development Programme. Despite potential risks such as geopolitical tensions and currency fluctuations, the company’s strong earnings growth and strategic initiatives support the Buy rating, with a target price of S$2.28.