Farm Fresh did a pre IPO briefing via livestream a few days back.
Here's some of the highlights :
Farm Fresh is focusing on building a strong cow/cattle gene bank
Basically we know that the standard Holstein cows reared for milk cannot withstand the hot climate of Malaysia. As such, Farm Fresh is doing crossbreeding via IVF (In vitro fertilization) between the Holstein Friesian cows from Australia with AFS (Friesian Sahiwal) cows from India to produce a hybrid cow (AFS-Holstein) which has the both qualities, able to withstand tropical weather and produce high milk yields.
Farm Fresh management is striving towards having ESG in their everyday operations. Post listing, if Farm Fresh becomes ESG compliant, it will become attractive to ESG funds.
The management indicates they see potential in Indonesia and Philippines as the dairy consumption there are still at low figures. Obviously Australia is an important market as the climate is suitable for milk production and they have a good partner in Australia to handle the expansion.
Farm Fresh's dealer network via direct marketing and selling
One of the reasons why Farm Fresh is growing fast in the last few years was through their direct dealership network. Housewives and anybody who had spare time can apply to become an agent and sell direct to their friends, families and neighbors.
Farm Fresh's is nurturing their plant based products (eg Soy, Almond)
This was something that I didn't know Farm Fresh did, they actually have Soy Milk, Almond milk and Oat milk products. Farm Fresh will be aiming to grow this segment also besides doing overseas expansion.
Farm Fresh's financials
I'm no a financial guy so I'll not comment so much on the financials. It's also typical for a company pre-IPO to have rosy financials. It's revenue and EBTA (earnings before tax) do show rising trend.
A few more minor items I noticed the management of Farm Fresh keeps emphasizing that their product contains actual ingredients (eg Banana extract in Banana milk) and no added sugar in their milk. Farm Fresh also mentioned they were the 1st to start a new market of Kurma milk (Dates milk) where everyone in the industry now starts to follow. Someone told me Farm Fresh now even have Tongkat Ali milk (aka male aphrodisiac milk aka energy drink).
Farm Fresh will list on Bursa Malaysia on 22-3-2022 with stock quote 5306 and will trade at 30x price to earning. Personally in my opinion, if the company continues to show progress and growth, it's highly possible it can go into the KLCI component index.
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