KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
CAB Cakaran Corp Bhd (KL:CAB) is accelerating its retail and food business strategy with an ambitious plan to quadruple its retail network across Malaysia over the next five years, backed by a RM100 million investment.
The move comes as the poultry and integrated food group deepens its footprint across the value chain — from feed production to consumer retail — a strategic step to strengthen its market position and margin control.
Retail Expansion: 25 to 100 Stores Nationwide
Group managing director Chris Chuah told The Edge that CAB aims to expand its Pasaraya Jaya Gading and Home Mart Fresh & Frozen supermarket chains to 100 outlets, up from the current 25, across its existing markets in Penang, Kelantan, Kedah, Perak, and Pahang.
“Our strategy is to build a nationwide retail network as one of the main distribution channels for the group’s products,” said Chuah.
In tandem, the group is also scaling up its Kyros Kebab fast-food chain following a successful rebranding last year, signaling a deeper push into consumer-facing segments. CAB currently operates six Kyros Kebab outlets across Selangor, Kuala Lumpur, and Negeri Sembilan.
Upstream Synergy: The Cargill Acquisition
Beyond retail, CAB’s growth story is being powered by its integrated poultry business. The group recently proposed a RM231 million acquisition of Cargill Feed Sdn Bhd’s feedmill operations in Malaysia — a strategic move to secure a cost-efficient feed supply chain.
Cargill operates feed plants in Westports, Butterworth, Melaka, and Sabah, producing animal feed for livestock and aquaculture.
“This acquisition allows us to avoid acquiring new land for feedmill expansion. Land near ports is scarce and costly — Cargill’s existing locations offer a major logistical advantage,” Chuah explained.
With over 10 breeder farms and 100 broiler farms across Peninsular Malaysia, the acquisition will enhance supply reliability and support long-term cost efficiencies.
Chuah added that the deal would also open doors to Cargill’s existing customer network, presenting cross-selling opportunities and additional revenue streams for CAB.
Financial Highlights: Earnings on the Rise
CAB’s strong fundamentals are reflected in its latest financial results.
For the nine months ended June 30, 2025 (9MFY2025), the group reported a 7.5% year-on-year increase in net profit to RM70.65 million, while revenue grew 2.4% to RM1.74 billion.
Shares of CAB Cakaran are currently trading at 81.5 sen, the highest level since 2018, giving it a market capitalization of RM568.6 million and a trailing P/E ratio of 7.1x — signaling that the stock remains undervalued relative to peers in the consumer and food sector.
The group’s net gearing stands at just 0.1x, down from 1.0x in 2021, reflecting consistent balance sheet strengthening over the past four years.
Sector Outlook: Poultry Remains a Core Protein
Malaysia’s poultry market continues to be resilient, supported by stable domestic consumption and affordable pricing relative to other protein sources.
“Overall poultry consumption is projected to remain strong, driven by population growth, urbanization, and increasing preference for protein-rich diets,” Chuah noted.
While broiler prices may see short-term dips, demand is expected to recover in the near term, supported by favorable structural trends.
Analyst Take: Expansion and Integration Drive Long-Term Value
CAB’s latest moves reflect a clear vertical integration strategy, connecting its upstream feed and farming operationsto downstream retail and F&B businesses.
The Cargill acquisition not only improves cost control and supply security but also enhances CAB’s competitive positioning amid rising feed ingredient costs.
With retail expansion, brand growth (Kyros Kebab), and feedmill integration, analysts expect earnings visibility to strengthen heading into FY2026 and FY2027.
At current valuation levels, CAB offers a compelling turnaround and growth story, particularly for investors seeking exposure to Malaysia’s consumer staples and agri value chain.
Investor Takeaway
CAB Cakaran’s integrated strategy — spanning feed, farms, and food retail — positions it as one of Malaysia’s most vertically connected poultry players.
If execution stays on track, the stock’s multi-channel expansion could unlock new earnings potential, making it one to watch in the mid-cap consumer space.
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