*Company update* 🏢 *Food Empire Holdings Ltd (FEH SP/ F03.SI)* • *Continued strong growth in Asia.* Food Empire experienced a sustained increase in sales across its core markets in 1Q24, showcasing continued strong consumer demand for the company’s products, especially in the Southeast Asia and South Asia regions, which continued to see growth of over 30% in 1Q25. The group continues to reap the benefits of its brand-building efforts in Vietnam, increasing its market share across the Vietnamese market, with revenue growing 44.6% YoY. This has significantly boosted Food Empire’s Southeast Asia revenue contribution, taking the top spot and contributing to 29.2% of the group’s total sales in 1Q25. Demand for the group’s products in South Asia also remains strong amidst a coffee consumption boom in the region. • We maintain an *OUTPERFORM* recommendation and increase our TP to *S$1.95* , based on a Discounted Cash Flow (DCF) valuation, with a terminal growth rate of 2% and a WACC of 10.0%, representing an upside of 10.1%. Read the full report here: https://www.kgieworld.sg/research/foodempire-may23