PETALING JAYA: Beshom Holdings Bhd
will continue to explore potential collaborations with strategic business partners, while implementing more targeted promotional campaigns and events at selected stores to support sales across its wholesale and retail divisions, says TA Research.
The health and wellness products group’s multi-level marketing (MLM) division is also expected to remain challenging amid intense market competition and weaker discretionary spending.
Overall, Beshom’s management remains cautious on its financial year 2027 (FY27) outlook given the challenging business environment. On Beshom’s recent 1Q27 core profit of RM0.6mil, TA Research said the results came in below expectations, accounting for only 6% of both its and consensus’ full-year projections.
The shortfall was mainly attributable to weaker-than-expected earnings before income tax across its core divisions.
Excluding the RM1.9mil one-off gain from disposal of investment properties, TA Research said 1Q27 core profit after tax dropped 59.5% year-on-year.
This was mainly due to lower sales contribution from higher-margin products amid higher operating expenses in the wholesale segment, higher marketing expenditure in the MLM division despite flat sales and subdued footfall and weaker purchasing power in the retail segment.
TA Research has cut Beshom’s FY27 to FY29 earnings forecasts by 13.9% to 18.7%, following the adoption of more conservative earnings before interest and taxes margin assumptions of 7.8% to 8.2% over FY27 to FY29 respectively.
This reflects higher operating expenses and continued sales-support initiatives.
The brokerage has kept a “sell” call on the stock with a lower target price of 47 sen from 56 sen previously.
