FPHB distinguishes itself via a wide variety of fresh vegetables coupled with value-added services. Currently, the company operates approximately 980 SKUs of fresh vegetables, meeting diverse customers’ needs. The provision of prepacked and fresh-cut vegetables not only caters to convenience but also commands a higher profit margin.
In response to escalating demand and operational constraints, FPHB is strategically transitioning from 12-hour shifts to 24-hour operations to streamline delivery and storage processes. At present, the cold room facilities are operating at over 95% capacity thus FPHB are planning to augment processing shifts, enhance delivery frequency, and utilize on-site refrigerated containers and temporary warehouses to accommodate the surging demand.
As part of its expansion strategy, FPHB is undertaking the construction of new facilities to enlarge its central distribution center that will enhance its built-up area from 78,721 sq ft to 149,548 sq ft, scheduled for commencement in 1Q 2026. The new production facilities will expand its floor space by 90%, thereby enhancing cold room capacity by approximately 35%, positioning FPHB for substantial growth in the foreseeable future.
The fresh vegetable industry is integral to Malaysia's food security agenda, directly impacting sustenance, health, and cost of living. In 2022, the industry contributed 8.9% to the GDP of the agriculture sector, with food and non-alcoholic beverages comprising of 29.8% of the CPI weight in 2023. With a market size of RM7.6bn in 2023, the industry presents significant growth opportunities, supported by governmental focus and consumer demand for fresh produce. As such, FPHB stands to benefit from this favorable industry landscape.
We expect FY23-FY26F earnings to grow at a strong CAGR of 33%, underpinned by (i) the transition to 24-hour shifts to meet escalating demand, (ii) the expansion of value-added services, particularly targeting the Singapore market, and (iii) the expansion of the Senai Centralized Distribution Center. In addition, FPHB boasts a healthy balance sheet, with gearing levels falling from 2.66x in FY20 to 0.53x in FY23, a trend expected to be sustained post IPO.
the wind start blowing guy..just the begining for the monsoon market demand. diesel up, overhead up.. price up ..profit up.. this counter raise on the right time at the right place.. numbers is good.. business is good i ll stay for long
despite 11.30am dumping.. bullish still win.. very strong momentum.. very good counter. any price bellow 0.9 still undervalued. don't miss the train.. cheers !
FPHB is Johore based big time Farm products company. At best they produce vegetables to Data Centre workers. Jokes aside, FPHB is a well managed company with good potential .
Buy on weakness if you can get at cheaper price and hold for longer term. FPHB is the multibagger stock in year 2024 & 2025. Other stock you can miss but cannot miss FPHB.
@Christine Cheah Is it still good price to enter? I bought little at 57
did you study their latest numbers and review their performance? just go to the market nearest, get some of their veggie.. evaluate the product. the quality, the packaging, marketing, logistic etc etc.. then you decide if it worth it to pyramiding your price. in the end of the day, that where your money goes into.
If you check the FPHB volume today, you can see the volume is relatively low compare to daily volume when it up around early to mid of Jun. Small volume consolidated means it will big up anytime. Buy on weakness now should can let you win big in this strong fundamental and good prospects company.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
skyjet
541 posts
Posted by skyjet > 2024-06-20 14:54 | Report Abuse
Strong support at 0.615