PETALING JAYA: TA Research has revised Beshom Holdings Bhd
’s sales assumptions downward by 5.5% to 7.2% for financial year 2025 (FY25) to FY27, reflecting weaker demand in the wholesale and retail segments.
Additionally, the brokerage said due to ongoing cost pressures, it has increased its projections for selling and distribution expenses in these divisions by 4.6% for FY25. As a result, TA Research’s earnings forecast for FY25-FY27 has been reduced by 4.4% to 29.5%.
According to the research house, Beshom’s management remains focused on cost-control measures to enhance profitability.
“With restrategised marketing efforts and ongoing promotional activities, we believe the group is well-positioned to improve its sales performance during the upcoming Chinese New Year period,” it added.
The group is principally involved in wholesale and retail, multi-level marketing, pharmaceutical manufacturing and Chinese medicinal clinics.
Following revisions to its FY25-FY27 earnings forecast estimates, the research house has lowered Beshom’s target price to RM0.84 per share from RM0.96 per share previously. Given limited upside potential and the absence of major catalysts, TA Research has downgraded the stock to a “sell” from a “hold”.
The brokerage said Beshom’s first-half FY25 (1H25) core net profit of RM5.3mil came in below expectations, representing 30% and 32% of its and consensus full-year estimates, respectively. The deviation was primarily attributed to higher-than-expected import costs.
The group’s 1H25 revenue rose 2.2% year-on-year (y-o-y) to RM74.7mil, driven by an 8.1% y-o-y increase in the multi-level marketing division. However, net profit declined 4.5% y-o-y to RM4.6mil, mainly due to weaker performance in the wholesale and retail segments.
