IPO Insights - Empire Premium Food Berhad

Empire Premium Food Berhad IPO's Analysis

Empire Premium Food Berhad

Empire Premium Food Berhad, through its subsidiary Empire Sushi, is an owner-operator of a chain of sushi food service outlets in Malaysia. The company targets the mass market with accessible and convenient localised Japanese food, primarily focusing on ready-to-eat sushi. As of the Latest Practicable Date (LPD), the Group operates 132 outlets across 12 states and 2 federal territories in Malaysia, comprising 117 grab-and-go outlets and 15 quick dine-in outlets. The business history traces back to 2010, starting with grab-and-go sushi operations on a consignment basis in hypermarkets and has since expanded its footprint and operational formats across Peninsular and East Malaysia.

IPO Details

Market: Main

Principal Adviser: Maybank Investment Bank Berhad

Issuing House: Malaysian Issuing House (MIH)

Shariah Status: SC (Yes)

Listing Price: 0.7

PE Ratio: 18.8-20.3

PE (FYE):

PE (FPE Annualised):

PE (Hybrid):

MITI allocation?: Yes

Closing Date: 31-Mar-2026

Balloting Date: 07-Apr-2026

Listing Date: 17-Apr-2026

Average Analysts FV :

Mplus (0.93), TA (0.83), Public Invest (0.98), RHB (0.88)

iSaham IPO Score :

Market Cap: 770.00 M

Number of Shares: 1,100.00 M ( info)

IPO Allocations	No. of Shares	%
Malaysian Public	55.00 M	5.0%
Bumiputera shareholders approved by MITI	137.50 M	12.5%
Eligible Directors and employees	15.0 M	1.36%
Private placement to selected investors and others	155.5 M	14.14%
Total Allocations	363.00 M	33.0%

Offer for Sales of 145.00 M existing shares representing 13.18% enlarged shares.

Public Issue of 218.00 M new shares representing 19.82% enlarged shares.

Median Sectors PE:

Consumer Products & Services (11.5)
Food & Beverages (14.2)

Median Peers PE:

Strategic Overview & Data Visuals

Utilisation of Proceeds

Purpose		Amount (RM'000)	%
Expansion	Expansion of outlets (grab-and-go and quick dine-in formats) in various states within Malaysia	79,100	51.8
Expansion	Upgrading and refurbishment of existing outlets	12,600	8.3
Working capital	Working capital	52,100	34.1
Listing expenses	Defray fees and expenses for our IPO and Listing	8,800	5.8
Total		152,600	100

Comparable Companies (Peers Similarity)

Company	%	Source	Note
KOPI	90	AI	Top pure-play peer with 100% retail F&B focus and high-growth mall dominance
BJFOOD	88	AI	Closest operational peer mirroring Empire's hybrid mix of grab-and-go kiosks and seated dining outlets
SDS	45	AI	Shares the retail store layout but differs as 61% of revenue is derived from wholesale manufacturing
TEXCHEM	40	IMR	Diversified conglomerate where F&B is a minority segment; product-only match (Sushi King)
FOCUSP	20	AI	Core business is Optical (85%); F&B (Komugi) is only a minor 14% revenue contributor

Analyst Highlights

Date	Analyst Highlights
31-Mar-2026 RHB	MYR0.88 FV based on 18x FY27F (Mar) P/E. Empire Premium Food is raising MYR153m from its IPO listing to fund new outlet openings and existing store upgrades. We project an exciting 3-year earnings CAGR of 19% as Empire deepens its market penetration with its effective business platform and attractive value proposition of offering quality products in a convenient model at affordable prices. We regard its brand equity, scale of operations, and management expertise as key differentiating factors to stave off competition. Replicating the tried-and-tested model. Empire is not resting on its laurels, being the largest sushi chain operator in Malaysia. It is targeting to add 56 new outlets in FY27-29F to its 143 stores as of Feb 2026, leveraging on the modular and highly scalable business platform developed over the years. Essentially, management believes fully owning and managing the business operations, as opposed to a franchise model, is the key to sustainable success. This allows a tight centralised control over the supply of food ingredients and operational SOPs to ensure the uniformity of product and service quality. On average, the payback period for new outlets is 8-9 months. Recipe to fend off competition. As one of the fastest-growing F&B brands in Malaysia, Empire's strong brand appeal lies in: i) Product quality - localised flavour that is well received by the market; ii) convenience - ready-to-eat sushi on an over-the-counter takeaway format (143 outlets; c.90% in grab-and-go format; >80% halal-certified), and iii) affordability - low unit price points starting from MYR1.30, a compelling value-for-money option for consumers amidst inflationary pressures. We stress that these competitive advantages are predominantly enabled by management's expertise and competencies in product R&D and efficiency management. This will be crucial in maintaining Empire's market-leading position in the industry with a low barrier to entry. Earnings outlook and FV basis. We forecast a 3-year earnings CAGR of 19% ahead, underpinned by robust outlet expansion, healthy SSSG, and operating leverage. In addition, Empire's cashflow generation should remain strong going forward to support both business expansion and dividend payout (targeting >30% payout ratio), whilst its net cash position will be further strengthened by the IPO proceeds. We value Empire at 18x P/E FY27F, at the higher end of the valuation range pegged to consumer retail peers under our coverage. This is to reflect Empire's relatively more promising growth prospects and respectable ROE on enlarged equity. We highlight that consumer companies with scalable business models and mass market appeal are highly sought-after, given the prevailing downtrading and value-seeking consumer behaviour amidst heightened inflationary pressures.
30-Mar-2026 Mplus	We project a 3-year earnings CAGR of 13.6%, with core PATMI expected to reach RM42.9m-RM55.6m over the next three years, mainly supported by new outlet expansion.
30-Mar-2026 Public Invest	Modular and scalable operations: Empire's modular business model facilitates rapid network expansion and ensures operational consistency and efficient rollout.
27-Mar-2026 TA	Empire is one of the leading Halal-certified sushi chains in Malaysia, known for its robust earnings growth.

Utilisation of Proceeds

Business Segments

Geographical Segments

Revenue by Financial Year Ended

Profit After Tax (PAT) by Financial Year Ended

SWOT Analysis

Strengths

Market Leadership: Empire Sushi is the largest sushi chain operator in Malaysia by both revenue and outlet count, managing 143 outlets which provides significant brand equity and procurement economies of scale.
Scalable Business Model: The grab-and-go format accounts for 87.3% of revenue, featuring small real estate footprints and low capital expenditure with rapid average payback periods of approximately 9 months.
Expanding Profit Margins: The company achieved significant operational efficiency, increasing PAT margins from 10.6% in FYE23 to 16.1% in FYE25 despite broad inflationary pressures.
Wide Halal Accessibility: With 132 out of 143 outlets being JAKIM Halal-certified, the company effectively penetrates the majority Muslim demographic in the Malaysian market.

Weaknesses

Tapering SSSG Growth: Overall Same-Store Sales Growth has slowed significantly from 12.2% in FYE23 to 1.6% in FPE25, indicating potential market saturation in existing locations.
Internal Cannibalisation Risks: The Central region reported negative SSSG of -2.1% in FPE25, directly attributed to new outlet openings diverting traffic away from established stores.
High Rental Dependency: The business operates entirely on tenanted commercial properties, making it susceptible to lease non-renewals and fluctuating rental costs across its 143 locations.

Opportunities

Future Outlet Expansion: The IPO proceeds are earmarked to fund 64 new outlets over the next four years, targeting untapped suburban areas and transit hubs to drive volume growth.
Increasing Convenience Demand: Growing urbanization and the rise of dual-income households support the structural shift toward affordable, ready-to-eat Japanese food options.

Threats

Supplier Concentration Risk: Reliance on the top five suppliers for 78.8% of total purchases in FPE25 poses a significant risk to operational continuity if supply chain disruptions occur.
Input Cost Fluctuations: Dependence on imported salmon and rice exposes the company to global commodity price swings and foreign exchange volatility.
Competitive Market Rivalry: The company faces stiff competition from established peers like Texchem Resources Berhad (Sushi King), convenience stores, and other fragmented foodservice providers.

Empire Premium Food Berhad IPO's Analysis

Empire Premium Food Berhad

IPO Details

Strategic Overview & Data Visuals

Utilisation of Proceeds

Comparable Companies (Peers Similarity)

Analyst Highlights

Utilisation of Proceeds

Business Segments

Geographical Segments

Revenue by Financial Year Ended

Profit After Tax (PAT) by Financial Year Ended

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Key Highlights

Conclusion

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