PETALING JAYA: Beshom Holdings Bhd
is expected to face challenges ahead as the fuel subsidy rationalisation may exert downward pressure on consumer spending, particularly on non-essential goods.
However, despite the economic landscape, TA Research remains cautiously optimistic about Beshom’s prospects going forward.
It said the group will closely monitor operational costs and revise its marketing strategy to enhance the performance of its multi-level marketing (MLM) division.
TA Research has also lowered its earnings assumptions by 1.1% and 1% for the financial year 2025 (FY25) and FY26, respectively, compared with the 2024 figure.
It valued Beshom using a 15 times price-earnings ratio and arrived at a new target price of 96 sen a share from 80 sen previously, following an update to its valuation base year to 2025.
Core net profit for FY24 dropped by 20.4% year-on-year (y-o-y), in tandem with decreased revenue by 13.4% y-o-y.
The weaker performance was mainly dragged by all segments, especially MLM and its retail business.
In the case of the MLM division, this was due to lower sales.
