More production on the way<\/strong><\/strong><\/strong><\/p>\n\n\n\n Food Empire Holdings reported higher revenue of US$117.5mn for 1Q24, up 14.5% YoY, compared to US$102.6mn in 1Q23, led by strong growth in its South-East Asia and South Asia market, which saw a growth of 35.3% and 33.0% respectively. The company saw revenue growth across its other key markets, showcasing resilience in consumer demand amidst ongoing geopolitical tensions worldwide, in a high interest rate environment.<\/p>\n\n\n\n Coffee prices had been rising since the start of April, and reached a high of US$247\/lb before retracing back to the current level of around US$203\/lb. The current level remains elevated, attributed to weather concerns in key coffee-producing regions, such as the recent drought in Vietnam. This increase in coffee prices is likely to lead to a higher cost of production for Food Empire in the near term.<\/p>\n\n\n\n We maintain an OUTPERFORM<\/strong> recommendation and reduce our TP to S$1.35,<\/strong> from S$1.65 previously, based on a blended valuation: Discounted Cash Flow (DCF), with a terminal growth rate of 2% and a WACC of 10.0%, as well as a comparable Multiples Valuation with an average industry price-to-sales multiple of 0.83x.<\/p>\n\n\n\n The company is exposed to currency risk as it operates in several key markets, including Russia, Ukraine, Kazakhstan, Vietnam, India, and many more. The escalation of geopolitical tensions, such as the Russia-Ukraine war, would further depreciate currencies such as the Ruble and Ukrainian hryvnia against the US dollar. The prolonged high-interest rate environment in the US also makes the USD comparably stronger compared to local currencies in Food Empire\u2019s key markets.<\/p>\n\n\n\n China Sunsine Chemical Holdings is a leading specialty rubber chemicals producer selling accelerators, anti-oxidant, vulcanizing agent<\/p>\n","protected":false},"author":10,"featured_media":32660,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_uag_custom_page_level_css":"","footnotes":""},"categories":[14],"tags":[],"class_list":["post-44331","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-reports"],"aioseo_notices":[],"uagb_featured_image_src":{"full":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2023\/09\/Food-Empire-Logo.png?wsr",1200,1200,false],"thumbnail":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2023\/09\/Food-Empire-Logo-150x150.png?wsr",150,150,true],"medium":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2023\/09\/Food-Empire-Logo-300x300.png?wsr",300,300,true],"medium_large":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2023\/09\/Food-Empire-Logo-768x768.png?wsr",768,768,true],"large":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2023\/09\/Food-Empire-Logo-1024x1024.png?wsr",800,800,true],"1536x1536":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2023\/09\/Food-Empire-Logo.png?wsr",1200,1200,false],"2048x2048":["https:\/\/www.kgieworld.sg\/research\/wp-content\/uploads\/2023\/09\/Food-Empire-Logo.png?wsr",1200,1200,false]},"uagb_author_info":{"display_name":"Keith Tan","author_link":"https:\/\/www.kgieworld.sg\/research\/author\/keithtan\/"},"uagb_comment_info":4,"uagb_excerpt":"China Sunsine Chemical Holdings is a leading specialty rubber chemicals producer selling accelerators, anti-oxidant, vulcanizing agent","_links":{"self":[{"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/posts\/44331","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/comments?post=44331"}],"version-history":[{"count":1,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/posts\/44331\/revisions"}],"predecessor-version":[{"id":44332,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/posts\/44331\/revisions\/44332"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/media\/32660"}],"wp:attachment":[{"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/media?parent=44331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/categories?post=44331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kgieworld.sg\/research\/wp-json\/wp\/v2\/tags?post=44331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\n\n\n1Q24 Business Updates.<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n
Rising cost of raw materials<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n
Valuation & Action<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n
Risks<\/strong><\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n
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