Tuesday, October 26

Analysts sanguine on FGV’s fragrant rice business

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FGV will be implementing a programme called 3FR programme with the aim of optimising local fragrant rice paddy farming, effective agriculture practices and technologies.

KUCHING (October 14): FGV Holdings Bhd’s (FGV) fragrant rice business garnered positive views from analysts as it could boost the group’s income while the Fortified Field Fragrant Rice (3FR) programme could also increase the productivity in the production process.

FGV will be implementing a programme called 3FR programme by its subsidiary FGV Integrated Farming Holdings Sdn Bhd (FGVIF). The aim of this programme is to optimise local fragrant rice paddy farming, effective agriculture practices and technologies.

“In regard to the 3FR programme by its subsidiary FGVIF, we are positive on the programme as we believe that this will boost FGV’s income specifically in their fragrant rice business and also increase the productivity in the production process as we do note that 3FR programme combines FGV’s expertise.

“It is also worth noting that 3FR programme will include a few farming technologies, namely utilising drones, field sensors, pest and disease control as well as automated transplanting machines,” the research team at MIDF Amanah Investment Bank Bhd (MIDF Research) said in a report.

It noted that in-line with the 3FR Programme, FGVIF is planning to expand its fragrant padi farming area in the next five years to 10,000 hectares.

“On top of that, the group is targeting to achieve 3.5 per cent share of Malaysia’s fragrant rice market in the next five years.

“We believe, with the effective implementation of 3FR proramme together with FGV’s expertise
in enhanced field performance through Agriculture 4.0 and precision farming, this aim is achievable,” it added.

Despite its bullish view on FGV’s fragrant rice business, MIDF Research said the 3FR programme is expected to have no impact on FGV’s FY21’s earnings. Hence, it made no adjustments to forward earnings.