Demand for Food Empire's Products Looks Strong Despite Ukraine War -- Market Talk

Dow Jones2022-05-19

0643 GMT - Demand for Food Empire's products looks strong despite the ongoing Russia-Ukraine conflict, says RHB Research's analyst Jarick Seet in a research report, as the brokerage raises the stock's target price to S$0.95 from S$0.93 with an unchanged buy rating. Its strong 1Q results showed demand in Russia, Ukraine, Kazakhstan and Commonwealth of Independent States markets remained firm, while demand in South Asia and some other areas grew solidly, the analyst notes. With foreign competitors leaving markets such as Russia, this would benefit companies like Food Empire that stayed. A recovery in the food and beverage maker's margins seems imminent, thanks to several initiatives undertaken previously, such as price increases, the analyst adds. The shares are 1.9% lower at S$0.52. (ronnie.harui@wsj.com)

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May 19, 2022 02:43 ET (06:43 GMT)

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Comments

  • yongts
    2022-07-10
    yongts
    THIS RHB ANALYSIS IS SKEWED on purpose or otherwise. IT LISTED 1ST QUARTER FINANCIAL RESULT THAT MEAN THE FIRST 3 MONTHS( jan- march). what is important is the war started after march 2022. They have loss their biggest market Russia & Ukraine (40%+ revenue) when the war started mainly due to embargo of Russia. I do not believe they can do any business with Russia as Singapore is also one of the signatory after march 2022. If they found a way of doing business that is even worse because they will get penalised severely if ever USA or Singapore decided to take action on them. Either way is no good. RhB also say a lot of companies had left Russia which is good for food empire !. It is only good when the embargo is lifted. When is it lifted? , nobody know. So RHB are talking about the futu
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