Broker Name: CGS International Securities
Date of Report: February 19, 2026
Excerpt from CGS International Securities report:
- Report Summary
- Food Empire Holdings Ltd (FEH) is expected to report strong FY25 results, driven by robust sales in Russia, improved margins, and appreciation of the Russian ruble.
- CGS International raises FY25 core net profit forecast to US\$68.9m and lifts target price to S\$4.00, reflecting optimism about ongoing revenue growth and potential liquidity improvements via bonus issue and higher dividends.
- FEH is benefiting from market leadership in Russia, expansion into Vietnam’s ready-to-drink beverages, and plans for a new freeze-dried coffee facility.
- Dividend payout ratios are expected to be around 70%, with possible special dividends and bonus issues to enhance shareholder returns and trading liquidity.
- Key risks include the Russia-Ukraine conflict, currency fluctuations, and cost increases, but FEH has managed these through price adjustments and natural hedging.
- FEH’s valuation remains attractive compared to international peers, with higher dividend yield and strong ROE.
- The company is actively diversifying its revenue base and implementing ESG initiatives for product safety and resource efficiency.
Above is an excerpt from a report by CGS International Securities. Clients of CGS International Securities can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com/
