0205 GMT - Food Empire Holdings' investment in a new coffee manufacturing facility in Vietnam likely has mixed impact, RHB Research analyst Alfie Yeo says in a research report. This new facility will help to boost the company's production of freeze-dried soluble coffee, and help it to diversify and grow its ingredients business, says RHB, which maintains the stock's buy rating. However, the new facility is a long-term investment with no revenue benefit before expected production commencement in 2028 and increased capital expenditure and depreciation, the analyst adds. RHB lowers its 2025-2026 earnings estimates for Food Empire by 2% each year, and cuts the target price to S$1.23 from S$1.36. Shares are 0.5% lower at S$0.965. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
September 15, 2024 22:05 ET (02:05 GMT)
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