Hong Leong Starts Call Buy FFB with 55% Upside as Cambodia and Ice Cream Business Drive Growth

Ng Han Siang (Einod) · November 12, 2026

AI-assisted, reviewed by Ng Han Siang (Einod)

Hong Leong Investment Bank analyst Jonathan Ooi initiated coverage of Farm Fresh with a “Buy” rating and RM2.84 target price, implying 55.2% upside. He believes the market undervalues its Cambodian expansion and higher-margin ice-cream business, alongside its established Malaysian milk operations.

​

Jonathan forecasts Cambodian revenue to triple from RM64 million in FY27 to RM195 million in FY29, supported by local production at Alpha City, which should lower freight costs and expand supply. Meanwhile, Bandar Enstek’s expanded capacity should ease ice-cream supply constraints, helping segment revenue nearly double from its FY26 level to RM249 million by FY29.

​

Looking ahead, he forecasts net profit to rise from RM130 million in FY26 to approximately RM220 million in FY29, representing a three-year compound annual growth rate of 19.2%. A richer product mix should support margins, although start-up expenses could temper FY27 growth before a stronger recovery in FY28. Free cash flow is also expected to turn positive in FY28 as capital expenditure moderates.

​

As of 9:25 a.m. on November 12, Farm Fresh’s share price was unchanged at RM1.83.

​

Disclaimer: All content is AI-aggregated from public sources for informational and educational purposes only. StockTipRatings.com does not constitute investment advice. Past performance and historical statistics are no guarantee of future returns.

​