This article first appeared in Capital, The Edge Malaysia Weekly on December 22, 2025 - December 28, 2025

Target price: RM2.82 HOLD

CGS INTERNATIONAL (DEC 16): We have raised our revenue estimates for Farm Fresh Bhd (KL:FFB) and now forecast FY25-FY28 revenue CAGR of 13.9%. Management confirmed that new ice cream product launches in 4Q25 or 1H26 will not only expand its product offerings but also allow Farm Fresh to expand its ice cream distribution to about 2,500 new petro-mart locations.

Farm Fresh has seen good take-up in Cambodia for its products, helped by local boycott of products from Thailand, and is now looking to establish a factory and a farm in Cambodia.

Farm Fresh is in the early stages of establishing operations in Indonesia. In our view, the ice cream product expansion and distribution are the most exciting given the segment’s strong performance thus far, generating 12% of 2QFY26 revenue, having launching in August 2024.

We raise our core net profit (CNP) estimates for Farm Fresh in FY26/27/28 by 2.9%/13.9%/16.8% respectively, on the back of higher revenue estimates as well as improved gross profit (GP) margin forecasts. The stronger ringgit has mitigated the higher farm gate prices of Australian milk. Management also noted that whole milk powder prices are easing in US dollar terms, further helping contain costs.

Also, with a growing revenue mix of higher margin ice cream, we estimate Farm Fresh’s GP margins to expand to 34.8% by FY29, notwithstanding start-up costs in new markets.

We maintain our “hold” call on Farm Fresh despite the higher target price of RM2.82, as we see its 29.2 times 2026 PER as having priced in its 26% FY25-FY28 EPS CAGR, with our FY25/26/27 CNP estimates now 5%/16%/15% respectively, ahead of Bloomberg consensus forecasts.

A rising earnings trend provides downside support, with risks from its expansion into new markets where teething problems and start-up losses could weigh on earnings and valuations. A weakening of the ringgit and a spike in raw material costs are downside risks. Better-than-expected take-up of its products provide upside risks, in our view.

Within the consumer staples space, we prefer Fraser & Neave Holdings Bhd (KL:F&N), with an “add” rating and target price of RM41.60, which trades at a more attractive 20.5 times 2026 PER.

Target price: RM2.85 BUY

TA SECURITIES (DEC 16): Binastra Atlantic Sdn Bhd, a consortium comprising Binastra Green Energy Sdn Bhd (51%) and Solarvest Holdings Bhd’s (KL:SLVEST) subsidiary Atlantic Blue Sdn Bhd (49%), was awarded solar engineering, procurement, construction and commissioning (EPCC) contracts by Maya Jaya Sdn Bhd under Malaysia’s Fifth Large Scale Solar (LSS5) programme.

The contracts carry a combined value of RM171.7 million, translating into an effective RM87.6 million for Binastra Corp Bhd (KL:BNASTRA), and involve the development of a total 56.5mw alternating current (mwac) of solar photovoltaic capacity across three sites in Kuala Langat, Selangor, and Sungai Lalang, Kedah. Under the collaboration, Binastra will be responsible for project funding and strategic oversight, while Solarvest will lead the technical execution of the projects.

With this latest job win, Binastra’s FY26 year-to-date new job wins have risen to about RM2.1 billion, lifting its total outstanding order book to RM5.2 billion. This represents a solid 3.3 times cover of our FY26 revenue forecast. Although current replenishment only accounts for 53% of our FY26 new order book replenishment assumption of RM4 billion, we believe the group remains well on track to achieve the balance over the next month.

Target price: RM3.05 OUTPERFORM

KENANGA RESEARCH (DEC 15): Kerjaya Prospek Group Bhd (KL:KERJAYA) announced that its wholly-owned subsidiary, Kerjaya Prospek (M) Sdn Bhd, has been awarded a fixed lump-sum RM225 million building contract by Majestic Gen Sdn Bhd to construct a 50-storey serviced apartment and commercial development in Jalan Lepas, Johor Bahru. This marks its second contract from Majestic Gen. Works are scheduled to commence in January 2026 with a construction period of 38 months.

This contract win, Kerjaya’s 12th in FY25, brings year-to-date new jobs to RM1.79 billion, matching our FY25 assumption of RM1.8 billion and exceeding the company’s RM1.6 billion guidance. The project is expected to deliver a 10% net margin. Kerjaya’s total outstanding order book now stands at RM4.3 billion, providing earnings visibility for the next three years.

Management has set a new FY26 job replenishment target of RM2 billion, supported by active tenders of RM2 billion to RM3 billion. We keep FY25 forecasts unchanged but lift FY26 earnings by 5%, raising our target price to RM3.05.

With expectations of stronger job wins in 2026, we upgrade the stock to “outperform” from “market perform”. The stock also offers attractive dividend yields of over 4%.

Target price: 48 sen BUY

TRADEVIEW RESEARCH (DEC 15): We remain positive on Wentel Engineering Holdings Bhd’s (KL:WENTEL) outlook, which is aligned with our assumptions. Demand within the security segment remains stable, contributing 66% of total 9MFY25 revenue and recording a 15% year on year (y-o-y) increase. This growth is driven by cross-border activities as governments upgrade checkpoints with computed tomo­graphy scanners and artificial intelligence-enabled detection due to stricter regulations, alongside resilient airport travel necessitating equipment upgrades.

Meanwhile, the electrical and electronic and machining segments also continued to expand, growing 28% and 99% y-o-y in 9MFY25, respectively, supported by the semiconductor market’s gradual recovery and trade diversion. The group continues to secure new product innovations from customers, which we expect to transition into mass production, driving higher revenue in our forecasts.

Construction of the new plant was recently completed. The group targets obtaining the certificate of completion and compliance in 1H26, with operations commencing in end-2Q26 or early 3Q26. This facility is essential to cater to future demand and new customers, providing necessary floor space as the current utilisation rate stands at 75%.
 

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's App Store and Android's Google Play.