Empire Premium Food Projects 19% Profit Growth Over Three Years Backed by IPO Expansion

KUALA LUMPUR, April 1 — Empire Premium Food Berhad, the operator behind the popular Empire Sushi takeaway chain, is projected to achieve a robust compound annual growth rate (CAGR) of around 19% in profit over the next three years, driven by an aggressive expansion strategy funded through a RM153 million initial public offering (IPO), according to RHB Research.

In a research note released today, RHB highlighted that the proceeds from the IPO are expected to be the key catalyst behind the company’s growth outlook, enabling the rollout of new outlets and upgrades to existing stores nationwide.

The research firm has assigned a fair value of 88 sen per share based on a forward price‑to‑earnings (P/E) ratio of 18 times earnings for the fiscal year ending 2027. This valuation reflects investor confidence in the company’s scalable business model and strong market potential.

Empire Premium Food currently operates a nationwide network of 143 outlets, primarily comprised of takeaway stores, and aims to open 56 new locations between FY27 and FY29, significantly expanding its market footprint. The company’s operations are centrally managed rather than franchised, giving it tighter control over supply chains and operational standards across its outlets.

RHB Research noted that Empire Premium’s modular and highly scalable platform allows for rapid store openings with relatively short payback periods — estimated at eight to nine months for new outlets. This has helped support continuous expansion while maintaining consistent product and service quality.

Another strength emphasized in the research is Empire Premium’s focus on affordable pricing and convenience. Many products are priced as low as RM1.30, and over 90% of outlets operate in grab‑and‑go formats, appealing to cost‑conscious consumers amid ongoing pressures on household budgets. Additionally, more than 80% of products offered are Halal certified, broadening the company’s appeal across diverse consumer segments.

RHB also forecast that revenue growth will be supported by both same‑store sales growth (SSSG) and the continued opening of new outlets — trends that are expected to drive steady top‑line expansion in the coming years.

The research firm pointed out that the company’s strong cash flow position following the IPO should further strengthen its capability to support ongoing expansion and maintain attractive dividend payouts, targeting a dividend ratio of over 30%.

Despite these positive projections, RHB also highlighted key risks that investors should consider. These include potential regulatory changes, sharp increases in commodity prices, and heightening competition within the food and beverage sector — factors that could impact profitability.