KUALA LUMPUR (March 28): Beshom Holdings Bhd’s (KL:BESHOM) outlook appears uncertain amid broader caution among consumers, TA Securities flagged after a weaker-than-expected quarter while the stock neared its 13-year lows.

Shares of Beshom fell more than 3% to 73 sen on Friday, closing in on its 2012 lows. TA Securities, the sole research house covering Beshom, noted that the earnings for the nine months ended Jan 31, 2025 (9MFY2025) only accounted for a little over 50% of its full 12-month forecast.

“Due to rising living costs and global economic uncertainties, consumers are becoming more cautious with their spending, particularly on non-essential items,” the house said in a note. “The outlook will remain challenging, primarily due to consumers' hesitancy in purchasing big-ticket items.”

Beshom has declined more than 10% from the start of 2025, continuing a multi-year downtrend. The stock has lost more than 80% of its value from its peak in 2017 as its earnings declined. At its last price, Beshom had a market value of about RM219 million.

The company — formerly known as Hai-O Enterprise Bhd — mainly sells traditional medicine, supplements, and beauty products. The company is also known for its multi-level marketing business.

TA Securities slashed its net profit forecast by 22% to just RM9.8 million for FY2025 to account for higher selling and distribution expenses from marketing expenses and import costs.

Still, the house believes there may be limited downside ahead, following the year-to-date decline, and upgraded its recommendation for the stock to ‘hold’ from ‘sell’. The house cut its 12-month target price by four sen to 80 sen.