KUALA LUMPUR (Oct 23): Foodie Media Bhd (KL:FOODIE) rose on Friday to extend a rebound from all-time lows thanks to a set of stronger-than-expected results at the social media content company.
Maybank Investment Bank, one of only two research houses covering the stock, said digital advertising expenditure (adex) appears resilient as brands will have to ramp up marketing efforts to win wallet shares at a time of subdued consumer sentiment.
Latest results show that “the industry continues to shift from traditional adex to digital adex”, the house said in a post-results note.
Foodie Media rose as much as 1.5 sen or 5% to 31 sen on Friday, set for its third-straight day of recovery. The stock was trading at 30 sen at 9.30am, as more than one million shares exchanged hands.
Shares of Foodie Media have lost more than one-third of their market value so far this year to RM266 million and the stock has also sank below its November listing price amid investors’ concern over its aggressive expansion in lower-margin segments.
Maybank Investment, a long-time bull on Foodie Media, raised its target price by five sen to 56 sen and maintained its ‘buy’ recommendation. Rakuten Trade, the only other research house covering Foodie Media, also has a ‘buy’ call on the stock with a target price of 52 sen.
Foodie Media is set to make a net profit of RM22 million for the financial year ending Aug 31, 2027 (FY2027), according to Maybank Investment’s latest projections, an increase of nearly 35% from the recently-ended financial year.
Corporates and agencies are extending their marketing spending, Maybank Investment said, noting that content creation — which made up more than half of total revenue for FY2026 — grew 29% year-on-year in the third quarter.
“We believe the digital marketing space provides a wider audience reach, especially in today’s era of social media and online engagements versus traditional media platforms,” the house added.