Farm Fresh Berhad 4QFY26 missed; negatives largely priced in

Research evidence excerpt

Farm Fresh Berhad 4QFY26 missed; negatives largely priced in

J P M O R G A N Asia Pacific Equity Research

22 May 2026

Farm Fresh Berhad Overweight

FARM.KL, FFB MK

4QFY26 missed; negatives largely priced-in Price (22 May 26):RM2.14

▼Price Target (Dec-27):RM2.60

Prior (Dec-26):RM3.20

FFB’s FY26 earnings of RM130m (+22% YoY) missed expectations, making up

only 93% of JPMe/consensus due to weaker-than-expected margins. Near-term Head of Malaysia Research,

Healthcare, Construction, Consumerprofitability is still pressured by timing-led cost inflation and pricing actions,

and Conglomerates

delaying margin recovery. This leads to our FY26–27E earnings cuts of ~22–23%.

Despite the cuts, we believe the recent share price correction has largely reflected Yen Voo, CFA, CA AC

these near-term pressures. At current levels, the stock appears to discount a slower (60-3) 2718 0914

yen.voo@jpmorgan.com

recovery path than our revised forecasts. Looking ahead, the soon-to-be JPMorgan Securities (Malaysia) Sdn. Bhd. (18146-

commissioned Enstek plant creates a higher-margin, scalable ice cream business X)

and remains the key structural earnings and margin driver, supported by El Niño- Jeanette Yutan

driven demand. Overall, we forecast a 13% EPS CAGR over the next two years. (63-2) 8878-1188

We cut our DCF-based Dec-27 PT to RM2.60 but maintain OW, implying ~20% jeanette.g.yutan@jpmorgan.com

J.P. Morgan Securities Philippines, Inc.

upside from current levels.

Nigel Ng

• Negatives in the price, +20% upside ahead: The share price has corrected (60-3)nigel.ng@jpmorgan.com2718 0962

~20% from recent highs following geopolitical-driven raw material cost

JPMorgan Securities (Malaysia) Sdn. Bhd. (18146-

spikes. The key issue is a timing-led cost mismatch, limiting near-term pass- X)