Farmiera Berhad IPO's Analysis
Farmiera Berhad
Farmiera Berhad, through its subsidiaries, is principally involved in poultry farming and poultry processing activities in Malaysia. The Group's operations are segmented into poultry farming, which includes self-operated and contract farms for the sale and trading of live broilers (including broiler DOCs, feed, and vaccines), and poultry processing, which comprises the processing and distribution of Halal-certified raw poultry products. The company operates several broiler farms and two main processing plants in Lukut, Negeri Sembilan, and Ipoh, Perak. Its product offerings include whole chickens and various chicken parts, which are supplied to a customer base that includes retail chains, livestock distributors, and food service providers across Peninsular Malaysia. The Group is also expanding vertically into the upstream sector with the development of broiler breeding and hatchery operations to supply its own broiler DOCs.
IPO Details
Market:
ACE
Principal Adviser:
Malacca Securities Sdn Bhd
Issuing House:
Tricor Investor & Issuing House (TIIH)
Shariah Status:
SC (Yes)
Listing Price:
0.25
MITI allocation?:
Yes
Closing Date:
30-Oct-2025
Balloting Date:
03-Nov-2025
Listing Date:
12-Nov-2025
Oversubscription rate:
16.69x
Average Analysts FV
:
TA (0.20)
iSaham IPO Score
:
Market Cap:
112.50 M
Number of Shares:
450.00 M
( info)
Median Sectors PE:
N/A
Median Peers PE:
Strategic Overview & Data Visuals
Utilisation of Proceeds
| Purpose | Amount (RM'000) | % | |
|---|---|---|---|
| Expansion | Capital expenditure - Parent stock farms | 12,548 | 42.9 |
| Expansion | Capital expenditure - Hatchery | 9,600 | 32.82 |
| Working capital | Working capital | 2,802 | 9.58 |
| Listing expenses | Estimated listing expenses | 4,300 | 14.7 |
| Total | 29,250 | 100 | |
Analyst Highlights
| Date | Analyst Highlights |
|---|---|
|
27-Oct-2025
TA |
|
Utilisation of Proceeds
Business Segments
Major Customers
Revenue by Financial Year Ended
Profit After Tax (PAT) by Financial Year Ended
Revenue by Financial Period Ended
Profit After Tax (PAT) by Financial Period Ended
SWOT Analysis
Strengths
- Experienced Management: The management team is led by founders with over 12 years of experience in the poultry industry, supported by a team of experienced key senior management.
- Stable Supply Chain: The company maintains a stable supply of broiler DOCs and feed from local suppliers and engages 38 contract farmers, ensuring a consistent supply of broilers without incurring significant capital expenditure for new farms.
- Long-term Relationships: The group has established long-term business relationships with major customers, including local supermarket and hypermarket chains, demonstrating reliability in product delivery.
- Food Safety Compliance: Poultry processing operations are accredited with MeSTI and Halal certifications, while self-operated farm has received MyGAP certification, demonstrating a commitment to high product quality and safety standards.
Weaknesses
- Customer Dependency: The group is dependent on its major customer, Segi Marine Enterprise Sdn Bhd, which contributed approximately 15.45% of total revenue in FPE 2025. A significant reduction in orders could adversely affect financial performance.
- Feed Price Fluctuation: The business is subject to fluctuations in the price of feed, a major cost component, as raw materials like soybean and corn meal are mainly imported. Significant price increases could impact profitability.
- Labour Intensive: The business operates in a labour-intensive industry and relies on a continuous supply of foreign workers. Any changes in labour and immigration policies could lead to labour shortages and increased costs.
- Liquidity Lagger: Current ratio (0.94) is the lowest vs peers: LHI (1.4), CAB (1.53), PWF (1.61), avg (1.35).
- Profit Margin Squeeze: Farmiera’s PAT margin (1.2%) is the lowest vs peers: LHI (6.8%), PWF (5.6%), CAB (4.1%), and peer avg (4.4%).
Opportunities
- Vertical Integration: The company is expanding into the upstream sector of broiler breeding and hatchery operations. This vertical integration is expected to enhance control over the supply chain, manage costs, and improve the quality of broiler DOCs.
- Growing Demand: There is a growing demand for poultry products in Malaysia, driven by population growth and chicken being an affordable source of protein. The per capita consumption of chicken meat expanded from 45.7kg/yr in 2019 to 49.3kg/yr in 2023.
Threats
- Livestock Diseases: The business is exposed to the risk of livestock-related diseases such as Avian Influenza. An outbreak could lead to the culling of flocks, farm shutdowns, and restrictions on sales, materially impacting operations and financial performance.
- Regulatory Risk: The poultry industry is subject to changes in government policies, such as the imposition of price controls, which could affect the profitability of the group.
- Intense Competition: The company operates in a competitive environment with established players that have integrated operations. This high level of competition may lead to price erosion and affect financial performance.
Key Highlights
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Conclusion
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