PETALING JAYA: Beshom Holdings Bhd
will proactively manage operating costs while enhancing sales to sustain profitability going forward.
However, its earnings for the second quarter (2Q26) of the financial year (FY26) were below expectations on weaker sales.
TA Research said that following downward revisions to sales assumptions of 11.4% to 11.9% for FY26 to FY28, its FY26, FY27 and FY28 core earnings forecasts for the company have been reduced to RM7.9mil, RM11.4mil and RM11.7mil from RM8.9mil, RM12.9mil and RM13.4mil, respectively.
It also revised its target price for Beshom to 51 sen per share from 58 sen, based on a valuation of 15 times 2026 earnings per share.
TA Research maintained its “sell” call on the stock.
Key strategies for managing operating costs and boosting sales include expanding distribution channels and fast-moving consumer goods product offerings to broaden market reach.
They also include closing underperforming stores or relocating outlets to more strategic locations, and launching incentive travel campaigns to motivate members.
Beshom’s 2Q26 revenue declined by 6.7% year-on-year (y-o-y) to RM38mil, reflecting more cautious spending among multi-level marketing (MLM) members.
Quarterly core net profit fell by 20% y-o-y to RM2mil, mainly due to reduced sales of higher-margin PB Thera series products in the MLM division and an unfavourable sales mix in the wholesale division.
Losses in the retail division narrowed to RM0.1mil from RM0.3mil, supported by a half-yearly sales campaign and an aggressive push for newly launched traditional Chinese medicinal products.
On a cumulative basis, Beshom’s first-half FY26 (1H26) core earnings declined by 29.6% y-o-y, largely due to weaker performance in the MLM and retail divisions.
Softer 2Q results from its wholesale division further weighed on the group’s 1H26 profitability.
With the Chinese New Year (CNY) festive season approaching, Beshom said in a filing on its latest financial performance that both the wholesale and retail divisions will capitalise on the upcoming CNY to launch extensive promotional campaigns across conventional channels and e-market platforms.
“The group is optimistic that the CNY campaign promotion will yield positive result in the next quarter,” it said.
