Kenanga Starts Call Buy FPHB, Cites Strong Growth Potential
STR AI ·
Kenanga Investment Bank analyst Wong Ling Ling has initiated coverage on Farm Price with an Outperform call and a target price of RM0.50, implying a 16% potential upside. She expects the wholesale distributor of fresh vegetables to deliver a 24% core net profit CAGR for FY25–27F, supported by its Senai Central Distribution Centre expansion, rising Singapore contributions, and favourable government policies to boost food security and healthy eating.
On September 25, another broker, RHB Investment Bank analyst Soong Wei Siang had set a target price of RM0.47, implying a 21% upside, citing its unlock FY26F (+33% YoY) earnings growth.
Wong Ling Ling, a new analyst mainly covering the consumer products & services sector on StockTipRatings.com's list, has a 0% average return and a success rate of 20% across the stocks she covered over a 1-year period following her calls.
Wong notes Farm Price’s strong track record, having delivered a 49% core earnings CAGR over the past four years. With market share in Malaysia and Singapore still below 1%, the company has ample room for growth through new product offerings, value-added services, and expansion into East Malaysia.
As of 11:30 a.m. on October 1, Farm Price’s share price remains unchanged at RM0.430.