Farm Fresh Berhad (FFB) to see contribution from its maiden growing-up milk powder products.
Malacca Securities (MSSB), in is Technical Focus note today (Apr 24), said the growing-up milk powder products allows FFB to enter a new market, and FFB’s branding in the dairy industry should help FFB to penetrate the market more quickly to provide revenue contribution.
Close to launching its consumer-packaged goods (CPG) ice cream. Since FFB’s acquisition of Inside Scoop, a CPG ice cream production line has been on the works and is close to launching. Meanwhile, the acquisition of Sin Wah will allow FFB to have immediate access to Sin Wah’s existing distribution and logistics networks.
Regional expansion into the Philippines is reaching its final stages. FFB expects to have the required licenses and registrations for the Philippines factory by May 2024. Upon commencement of operations, FFB plans to roll out its chilled and UHT products, and growing-up milk powder.
Technical Outlook
Share price has been consolidating around and last closed at RM1.49. As the technical readings are positive, MSSB expects follow-through buying interest to be seen in the near term, targeting RM1.60-1.62, with a LT target at RM1.65. Support is set around RM1.41-1.43, with a cut loss set around RM1.40.
Company profile
FFB provides dairy products. The Company offers a wide variety of milk and flavoured yogurt. FFB serves customers in Malaysia.
