Farm Price Holdings Berhad: Thriving Harvests
Thu, 02-May-2024 06:46 am
by Kenneth Leong • Apex Research

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FPHB (0304)
Target Price (RM)
0.42
Recommendation
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  • Farm Price engages in wholesale distribution and retail of fresh vegetables, F&B products and groceries, commanding approximately 0.8% market share in the fresh vegetables industry in Malaysia. 
  • We project sequential core earnings growth to be supported by (i) increasing value added services particularly towards Singapore market, (ii) ramping up workers shift from 12 to 24 hours to cater for strong demand and (iii) gradual increase in fleet size. 
  • Farm Price is valued by pegging FY25F core EPS of 3.2 sen to PE of 13.0x, leading to a FV of RM0.42 (75.0% potential upside from IPO price).
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