In a report released today, John Cheong from UOB Kay Hian maintained a Buy rating on Food Empire Holdings Limited (F03 – Research Report), with a price target of S$1.98.
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John Cheong has given his Buy rating due to a combination of factors that highlight Food Empire Holdings Limited’s strong performance and promising outlook. The company reported a 16% year-on-year increase in revenue for the first quarter of 2025, exceeding expectations and accounting for 27% of the full-year estimate. This growth was driven by significant sales increases in Southeast Asia, South Asia, and the Ukraine, Kazakhstan, and CIS regions, with the Southeast Asia segment leading in revenue contribution for the first time.
Food Empire’s ability to maintain strong revenue growth is attributed to its dynamic pricing strategy, which helps mitigate inflationary pressures and rising costs. The company’s strategic focus on brand building and market leadership has positioned it well in high-growth emerging markets, particularly in Asia. This focus, combined with effective marketing and consumer engagement efforts, has strengthened brand loyalty and facilitated new customer acquisition, supporting John Cheong’s optimistic outlook and Buy rating.
In another report released yesterday, CGS-CIMB also reiterated a Buy rating on the stock with a S$1.95 price target.