SINGAPORE (March 2): UOB KayHian is keeping its “buy” on Food Empire Holdings with 78 cents target price, thanks to a stable Russian rouble, strong growth prospects in Indochina and proven pricing power in the CIS region.
In 4Q16, Food Empire recorded an increase in revenue in local currency terms in its core markets of Russia, Ukraine and Indochina. This shows the pricing power that Food Empire has, especially in Russia and Ukraine, given their huge coffee mix market share in these countries. Meanwhile, the Russian rouble has appreciated from 59/US$ to about 58/US$.
