CGS International Securities
Date of Report: September 15, 2025
Food Empire Holdings Ltd: Accelerating Branded Growth in Vietnam and Driving Regional Diversification

Introduction: Food Empire’s Strategic Expansion in Southeast Asia

Food Empire Holdings Ltd (FEH), a Singapore-based food and beverage conglomerate, is making significant strides to expand its branded business in Vietnam while actively diversifying its revenue streams across Asia. This research report, powered by the EFA Platform and featuring Shariah-compliant and ESG analysis, provides a comprehensive snapshot of FEH’s operational highlights, financial performance, and competitive landscape as of September 2025.

Vietnam Focus: Factory Visit and Brand Dominance

FEH’s Vietnam factory was visited on September 10, 2025, revealing a plant operating at full capacity. Management expects further automation and workflow enhancements could boost output by approximately 15% in FY26. The company’s flagship product, MacCoffee CafePHO Sua Da, stands out, representing 77% of FEH’s FY24 revenue in Vietnam. Notably, 88% of FEH’s Vietnam sales are through general trade, with the remaining 12% via modern trade channels.
MacCoffee brand share (by value) in Vietnam: 15% (FY24)
Vietnam revenue CAGR (FY12-25F): 35.1%
FEH’s business model in Vietnam is anchored by quality branded products and amplified by aggressive marketing and direct customer acquisition. The addition of 144 Customer Acquisition Sales representatives highlights a robust push into direct-to-home delivery. FEH has also introduced a ready-to-drink (RTD) canned coffee, with further beverage innovations anticipated.

Financial Performance and Outlook

FEH’s financial trajectory is marked by steady revenue and EBITDA growth, with a clear commitment to shareholder returns. The Monetary Authority of Singapore’s S$5bn Equity Market Development Programme (EMDP) is expected to further enhance liquidity and business development in 2H25F. FEH’s target price remains unchanged at S$2.94, anchored by a valuation basis of 17x FY27F P/E.

Target price: S$2.94
Current price: S$2.59
Up/Downside: 13.5%
Consensus ratings: 5 Buys, 0 Holds, 0 Sells

Peer Comparison: Food & Beverage Sector Snapshot

FEH’s valuation and growth are benchmarked against regional and global peers. The following table provides a comparative analysis of major listed F&B companies, covering metrics such as P/E ratios, EPS CAGR, P/BV, ROE, and dividend yield.

Key Observations:
FEH’s forward P/E (38.8x for 2025F) is higher than most peers, but drops to 16.2x for 2026F, indicating expected EPS rebound.
Dividend yield (3.1%) is competitive, with ROE at 8.9%.
Peer companies such as Ajinomoto, Fraser & Neave Holdings, Monde Nissin, Nestle, Nissin Foods, NongShim, Power Root, and others show diverse valuation and growth profiles.
Singapore F&B sector simple average P/E: 12.1x (2025F), dividend yield: 4.6%.
International coffee sector simple average P/E: 21.4x (2025F), dividend yield: 2.2%.

ESG & Governance: Product Safety and Sustainability in Focus

FEH has not yet received an ESG score from LSEG, but the company emphasizes product safety and regulatory compliance. FEH targets zero confirmed incidents of non-compliance with health, safety, and labelling laws, achieving these targets in FY24.
Environmental initiatives include:
Energy-saving measures at Food Empire Vietnam (FEV): day/night light switching, solar lighting, skylights, and LED lamps.
Commitment to improving resource use efficiency and reducing emissions across the value chain.

Operational and Financial Highlights: By the Numbers

FEH’s balance sheet demonstrates healthy cash reserves, low gearing, and strong ROE and ROIC metrics. Below is an overview of key balance sheet and ratio data:

Re-Rating Catalysts and Risks

Catalysts for Re-Rating:
Improving operating margins, especially as market demand in Russia stabilizes (Russian net margin 1H25: 13.2% vs 7.5% 1H24)
Sustained market share in Russia (30% of 1H25 revenue)
Resolution of Russia-Ukraine conflict
Key Risks:
Escalation of the Russia-Ukraine conflict, impacting Russian operations
Ruble depreciation against US Dollar, reducing revenue in USD terms
Product safety or regulatory compliance breaches

Shareholder Structure and Major Holders

Major shareholders as of the report date:
Universal Integrated Corp: 25.0%
Tan Guek Ming: 12.0%
Nair Sudeep: 13.2%
Free float: 39.6%

Recommendation Framework

“Add”: Total return expected to exceed 10% over next 12 months
“Hold”: Total return between 0% to +10%
“Reduce”: Total return below 0%
Sector and country ratings are also provided, guiding investors on overweight, neutral, or underweight positioning relative to benchmarks.

Conclusion: Food Empire Holdings Positioned for Growth and Resilience

Food Empire Holdings Ltd is driving robust growth in Vietnam, leveraging its strong brand and operational improvements, while actively diversifying beyond its core markets of Russia and Ukraine. With a solid financial foundation, proactive ESG and product safety measures, and a clear strategy for regional expansion, FEH stands out in the competitive Asian beverage landscape. The company remains a compelling “Add” for investors seeking exposure to Southeast Asia’s evolving consumer markets.

Disclaimer

This article is intended for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making investment decisions.