KLSE: FFB

FARM FRESH BERHAD Target Price:

CONSUMER PRODUCTS AND SERVICES 1.930(MYR)

Analyst: NUR IZZLYN DAYINIE BINTI NOORZAINI High limit: 1.700
Stop Loss: 1.600
TABLE OF CONTENTS
Report Date: 13 / 05 / 2022
Stock Fundamental Analysis
1.Company stock summary
2.Business Review
3.Financial Performance Review
4.Stock Prices and Dividend Review
5.Analyst stock recommendation based on
fundamental analysis

As shown in the above figure, it is the financial
summary of Farm Fresh Berhad with all the key
numbers.

The current FFB market cap is 3.103B MYR. The next
Farm Fresh Berhad earnings date is June 1, the
estimation is 0.01 MYR.

COMPANY STOCK SUMMARY

In the charts above, we can see the price movement of
the company Farm Fresh Berhad. Its last share price
was RM1.60 and the open price was RM1.69. Farm
Fresh Berhad's average volume for the last 10 days was
5.782M when its current volume is 12.398M.

FARM FRESH BERHAD Target Price:

CONSUMER PRODUCTS AND SERVICES 1.930(MYR)

Analyst: NUR IZZLYN DAYINIE BINTI NOORZAINI High limit: 1.700
Stop Loss: 1.600

Report Date: 13 / 05 / 2022

BUSINESS REVIEW FARM FRESH BHD PRODUCTS

Farm Fresh Bhd. manufactures and distributes a variety MALAYSIA'S NO. 1 NATURAL DAIRY BRAND
of dairy and plant-based products. It sells chilled and
ambient ready-to-drink milk, as well as yoghurt. Fruit Farm Fresh Bhd. is currently recognized as Malaysia's
jams and sauces are also available. Tuan Kin Loi and biggest dairy brand, more than ten years after it was
Tuan Ee Loi formed the company in 2009, and it is launched on a small farm in Johor.
based in Johor Bahru, Malaysia. They aimed to deliver the best nutrition to all
Malaysians through our varied product line. This covers
FINANCIAL PERFORMANCE REVIEW their most popular milk and yogurt-based products, as
well as plant-based milks like soy, almond, and oat milk.
Farm Fresh reported a cumulative sales and net profit It is mentioned that they will continue to stay faithful to
of RM373.9 million and RM61.3 million for the nine- their love of the land and our ladies, who give the finest
month (9M) period ending 31 December 2021, and creamiest food, just as nature intended, while they
respectively, an increase of 3.0% and 169.7% year on strive to deliver natural goodness to Malaysians (and
year. beyond).

The increase in the RTD milk category market share
from 15.0 percent in December 2020 to 18.0 percent in
September 2021 was primarily driven by better
customer recruitment, higher RTD milk product sales,
and the introduction of new goods throughout the
financial period.

FARM FRESH BERHAD Target Price:

CONSUMER PRODUCTS AND SERVICES 1.930(MYR)

Analyst: NUR IZZLYN DAYINIE BINTI NOORZAINI High limit: 1.700
Stop Loss: 1.600

Report Date: 13 / 05 / 2022

STOCK PRICES AND DIVIDEND REVIEW

The figure shows that the price of stock is changing unpredictably. This can happen due to the many
factors such as the company's outlook whereby the expected of profit or loss that they will tolerate
because of the economic or industrial development.

FARM FRESH BERHAD Target Price:

CONSUMER PRODUCTS AND SERVICES 1.930(MYR)

Analyst: NUR IZZLYN DAYINIE BINTI NOORZAINI High limit: 1.700
Stop Loss: 1.600

Report Date: 13 / 05 / 2022

STOCK PRICES AND DIVIDEND REVIEW

The figure shows that the dividend yield for the company and market. The market bottom of 25% have
1.8% of dividend, market top have 4.6% and the industry average shows a 3.3% of dividend.
Unfortunately, it is unable to evaluate Farm Fresh's dividend yield against the bottom 25% of dividend
payers, as the company has not reported any recent payouts. However, it is forecasted that in 3 years the
dividend yield increase 0.9%.

The table above depicts the industry and market as Farm Fresh Bhd. average data. It only shows the
future dividends estimate data for Farm Fresh Bhd. This is because they have insufficient data to
determine the dividends per share in the past and also the dividends payments.

FARM FRESH BERHAD Target Price:

CONSUMER PRODUCTS AND SERVICES 1.930(MYR)

Analyst: NUR IZZLYN DAYINIE BINTI NOORZAINI High limit: 1.700
Stop Loss: 1.600

Report Date: 13 / 05 / 2022

ANALYST STOCK RECOMMENDATION BASED ON FUNDAMENTAL ANALYSIS

Farm Fresh is a dairy company that is vertically integrated Farm Fresh, according to Frost and Sullivan, has a
"grass-to-glass" model providing operational and financial considerable market share in Malaysia. It recorded an
benefits. Farm Fresh's operation begins with dairy cow 18 percent of market share for ready-to-drink (RTD) milk
rearing and ends with the packaging of its healthful and by the year 2020.
tasty milk safely reaching clients' drinking glasses.
They have a presence in the dairy industry's upstream,
midstream, and downstream areas, which they use to
promote their expansion and growth.

Despite the fact that the company has expanded greatly,
the underlying concept that nothing is purer or better than
fresh dairy remains unchanged. As a result, the company
expanded dramatically, as did the size of its dairy cattle
herd. This assures that businesses will have enough milk
on hand to meet the growing demand for dairy products
from consumers.

MALAYSIA'S WELL LOVED HOMEGROWN DAIRY Farm Fresh is also one of the largest and fastest
BRAND growing players in the attractive Malaysian dairy
industry.
Farm Fresh Bhd's portfolio includes more than just liquid
milk. Farm fresh began with a focus on fresh milk and FARM FRESH HAS ONE OF THE LARGEST GENE
gradually expanded its product line. It now also sells BANK FOR THE AUSTRALIAN FRIESIAN SAHIWAL
yoghurt drinks, goat's milk, and a variety of other dairy (AFS) BREED OF DAIRY CATTLE
goods.

People may not know that Farm Fresh owns one of the
largest gene banks for a certain breed of a dairy cattle. It
is called as the Australian Friesian Sahiwal (AFS).
Due of its excellent resilience to heat, ticks, and blood
parasites, the AFS makes up nearly all of farm fresh's
breed in its Malaysia farms. In addition, It also has a
high reproductive rate and has a high tolerance for
humidity.

FARM FRESH BERHAD Target Price:

CONSUMER PRODUCTS AND SERVICES 1.930(MYR)

Analyst: NUR IZZLYN DAYINIE BINTI NOORZAINI High limit: 1.700
Stop Loss: 1.600

Report Date: 13 / 05 / 2022

ANALYST STOCK RECOMMENDATION BASED ON FUNDAMENTAL ANALYSIS

FARM FRESH BHD IS A PROFITABLE COMPANY IPO PROCEEDS WILL BE MAINLY FOR CAPITAL
EXPANDITURE
The top line of FFB is growing at a breakneck pace.
Currently, it is reporting 2 year 65.89% CAGR. Its
downline has grown as well at a 2 year 14.91% CAGR.

Selling and distribution make up a significant portion of Farm Fresh is not going to take it easy in this business.
its costs. A closer look at its selling and distribution More than half of the public proceeds will be used to
costs reveals that transportation and logistics costs expand the company's capital. A new industrial base
make up the vast majority of them. and farm will be built in Malaysia with 46.5 percent of
the proceeds. Furthermore, 20% will be used to expand
The Farm Fresh's raw milk must be transferred to their Australian operation.
pasteurisation and packing facilities. As a result, it will Finally, 13.3% will go toward regional expansion,
cover a major percentage of Farm Fresh's expenses. primarily in Indonesia and the Philippines.

Farm Fresh is a business to keep an eye on. Its
marketing methods, branding, and expansion have all
demonstrated that it is capable of competing with the
market's current dairy giants.

Its desire to expand beyond Malaysia, as well as its
expansion in market share across all dairy segments,
may easily justify its high price tag.
However, this does not guarantee smooth sailing
outside of Malaysia. In other markets, there are
numerous competitors.