CIMB Investment Bank Bhd (CIMB Securities) maintained its HOLD call on Farm Fresh Bhd with an unchanged target price of RM2.30, saying the group’s planned RM278.1 million dairy project in Cambodia could strengthen its regional footprint over the longer term, although key details on funding, ownership and execution remain limited.
Farm Fresh, together with the Pursat Provincial Administration, Sonavith Co Ltd and Cambodia’s Alpha Group, signed a land lease agreement on Aug 5 for the Farm Fresh Pursat dairy project in Veal Veng district, Pursat Province. The site spans about 2,500 acres and will comprise a dairy farm and milk processing facility.
CIMB Securities’ channel checks indicate the project could target annual fresh milk production of up to 40 million litres. The research house estimates the site could potentially accommodate about 17,000 cows at full scale based on its land size and Farm Fresh’s stocking density at its Muadzam Shah farm.
The project would mark Farm Fresh’s first dairy farm outside Malaysia and Australia. Cambodia accounted for about 3% of the group’s FY2026 revenue after exports began in July 2025.
CIMB Securities said Cambodia’s local fresh milk production is estimated at only about 20,000 litres a day against national demand of 90,000 to 100,000 litres, suggesting a significant supply gap that could support local production.
However, the research house noted that details on the ownership structure, funding requirements, farm operations and project timeline have yet to be disclosed. It also expects start-up losses to weigh on near-term earnings as the project ramps up.
CIMB Securities retained its Hold call and RM2.30 target price pending further details, with near-term re-rating potential capped by expansion costs, higher depreciation and rising input costs.
As of 10.52 am, the stock price gained 2.28% to RM2.24.
