Brewing a growth recipe in Asia<\/strong><\/p>\n\n\n\n Food Empire is significantly expanding its production capabilities across Asia to meet growing demand. In Vietnam, a new freeze-dried soluble coffee facility is set to begin construction by late 2025 and become operational by 2028, bolstering its ingredients business. Meanwhile, its Malaysian snack manufacturing facility will increase output by about 50% by the third quarter of 2025 after an expansion is completed in the first half. Outside Southeast Asia, Food Empire\u2019s first coffee-mix plant in Kazakhstan is expected to be finished by the end of 2025, boosting overall coffee-mix capacity by approximately 15% and extending its reach into Central Asia. These strategic expansions are set to drive continued top-line growth across its key Asian markets.<\/p>\n\n\n\n Food Empire Holdings reported higher revenue of US$136.6mn for 1Q25, up 16.3% YoY, compared to US$117.5mn in 1Q24, led by strong growth in its Southeast Asia and South Asia markets, which saw a growth of 33.8% and 31.7% respectively. The company\u2019s markets in Ukraine, Kazakhstan and CIS experienced growth of 14.6% YoY, while the Russian market saw a slight increase in revenue of 0.5% YoY. The company experienced revenue growth across all key markets, demonstrating robust consumer demand despite increased prices due to higher raw material costs and ongoing global geopolitical tensions.<\/p>\n\n\n\n We maintain an OUTPERFORM<\/strong> recommendation and increase our TP to S$1.95<\/strong>, based on a Discounted Cash Flow (DCF) valuation, with a terminal growth rate of 2% and a WACC of 10.0%, representing an upside of 10.1%.<\/p>\n\n\n\n Food Empire remains exposed to currency risk due to its broad geographic footprint, which includes key markets such as Russia, Ukraine, Kazakhstan, Vietnam, and India. Heightened geopolitical tensions\u2014most notably the ongoing Russia-Ukraine conflict\u2014have led to further depreciation of local currencies such as the Russian ruble and Ukrainian hryvnia against the U.S. dollar. Additionally, the sustained high interest rate environment in the U.S. has strengthened the dollar relative to many of the currencies in which the Group operates.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" China Sunsine Chemical Holdings is a leading specialty rubber chemicals producer selling accelerators, anti-oxidant, vulcanizing agent<\/p>\n","protected":false},"author":16,"featured_media":68190,"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-68187","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-reports"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n
\n\n\n\nExpanding production capabilities across Asia<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n
1Q25 Business Updates<\/strong><\/strong><\/strong><\/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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