- We lower our earnings forecast by 4-9% to factor Food Empire (SGX:F03)’s proposed notes issue to Ikhlas Capital and slightly lower margins due to sustained higher coffee prices. Our Food Empire's target price based on 10x blended FY24-25F P/E is consequently reduced, offset by the impact of share buyback.
Strategic partnership with Ikhlas Capital on the cards.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
To develop & expand its business in South East Asia & South Asia
- Ikhlas Capital will inject US$40m into a special purpose vehicle wholly owned by Food Empire that will hold or possess the option to hold a portfolio of business operations, including Food Empire’s South East Asian and South Asian businesses.
- The notes will carry 5.5% annual interest and have a tenor of 5 years. Ikhlas Capital will have the non-obligatory right to convert the notes into new shares at S$1.09 per share.
- The proceeds will help to fund capex and merger and acquisition activities in South East Asia and South Asia.
Clarification of media reports in relation to a project in central Vietnam province
- Read more at SGinvestors.io.
Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2024-07-03
Read also RHB's most recent report:
2024-09-16 Food Empire - Expanding Ingredients Capability In Vietnam; BUY.
Previous report by RHB:
2024-09-02 Food Empire - Capacity Expansion Driving Growth; Maintain BUY.
Price targets by 3 other brokers at Food Empire Target Prices.
Listing of research reports at Food Empire Analyst Reports.
Relevant links:
Food Empire Share Price History,
Food Empire Announcements,
Food Empire Dividends & Corporate Actions,
Food Empire News Articles
