PETALING JAYA: Malayan Flour Mills Bhd ’s (MFM) net profit is expected to recover in its current financial year after being hit by a string of issues the previous year.

AmInvestment Bank Research said the company’s flour and poultry divisions would improve, and has maintained its “buy” call with an unchanged fair value of 89 sen.

The research house said its recent meeting with MFM affirmed its positive outlook on the group.

The research house expected the earnings before interest and tax (EBIT) of MFM’s flour division to improve by 11.1% to RM73.2mil in its current financial year on the back of lower wheat costs, which accounts for more than half of the production costs.

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