PETALING JAYA: Beshom Holdings Bhd
is expected to see slight revenue growth in financial year 2025 (FY25) on the back of the anticipated recovery of its multi-level marketing (MLM) division.
According to TA Research, the group’s MLM division is expected to grow by 10.3% year-on-year (y-o-y) to RM57.4mil in revenue for FY25.
This would likely be driven by an increase in disposable income among Malaysian citizens, the expansion of product offerings and improved contributions from both new and existing members.
“Overall, we anticipate the group’s revenue to grow by 4.8% y-o-y, reaching RM158mil in FY25, reversing three consecutive years of negative sales growth since FY22,” the research house said in a report.
TA Research said that Beshom’s sales are also expected to improve in its third quarter ending March 2025 (3Q25) driven by strong performances in both the wholesale and retail divisions.
The group intends to leverage on the upcoming Chinese New Year (CNY) festival to roll out promotional campaigns based on historical performances from the past three years during the CNY period, during which the group posted better quarterly results in 3QF2 and 3Q24, with sales experiencing 7% and 11% growth, respectively.
“Additionally, we expect higher discretionary spending and resilient domestic spending in 2025,” TA Research added.
For the first half ended Oct 31, 2024, Beshom posted revenue growth of 2.2% y-o-y to RM74.7mil, backed by strong sales growth in its MLM division – which was mainly due to the successful campaign of its PB Thera series of products.
However, the weaker sales performance from the wholesale and retail segments partially offset the MLM’s division growth.
Consequently, Beshom’s 1H25 net profit had declined by 4.5% y-o-y to RM4.56mil, attributable to higher sales cost of RM45.6mil.
“Going forward, we expect 2H25 performance to improve, buoyed by higher festive spending and effective cost management,” the research house added.
TA Research maintained its earnings projections for FY25 to FY27 and a “sell” call on the group at an unchanged target price of 84 sen per share, based on 15 times calendar year earnings per share.
