KUALA LUMPUR: Mercury Securities Sdn Bhd has assigned a Fair Value call for Fiamma Holdings Bhd, a Main Market-listed company involved in the distribution and servicing of home appliances, sanitaryware, kitchen systems, healthcare products, property development and property investment.
The research firm assigned a fair value of RM1.32 to Fiamma Holdings, compared with the previously reported last price of RM1.15.
According to Mercury Securities, the fair value was derived based on a target price-to-earnings (P/E) multiple of 13.67 times, representing the 10-year historical average P/E of selected peers, applied to Fiamma’s estimated FY27 earnings per share (EPS) of 9.69 sen.
The research house described Fiamma as a well-established Malaysian distributor of electrical home appliances and building-related products, with a product offering spanning kitchen systems, laundry appliances, sanitaryware, fittings and home living solutions.
Mercury Securities noted that Fiamma is backed by an entrenched nationwide distribution network and long-standing supplier relationships, positioning the Group to benefit from replacement demand and steady consumption trends across the residential and commercial segments.
The report highlighted Fiamma’s trading and services segment as the Group’s core earnings anchor.
The segment contributed 86.1% of FY25 total revenue, or approximately RM328.2 million, supported by demand for essential household products, a diversified brand portfolio and broad market reach.
Mercury Securities also highlighted Fiamma’s diversified business model, which spans trading and services, property development, and investment holding and property investment.
According to the report, this structure provides the group with a combination of stable, cyclical and recurring income streams.
On brand positioning, the research house noted that Fiamma’s in-house brands, including Elba, Faber and Rubine, continue to underpin its presence in Malaysia’s household appliance market.
Mercury Securities highlighted that Elba led the large cooking appliances segment with a 19% volume share in 2025, supported by product innovation and portfolio expansion.
Looking ahead, Mercury Securities expects Fiamma’s core earnings to register a two-year compound annual growth rate (CAGR) of 21% from FY26 to FY28, supported by modest topline growth, steady demand across its core trading and services segment and continued expansion of its product offerings.
The research house also expects Fiamma’s gross profit margin to improve by approximately one percentage point from FY26 onwards, supported by a better product mix.
It further projects PBT and PATAMI margins to improve gradually from approximately 14% and 10% in FY26 to approximately 19% and 15% in FY28, respectively.
Mercury Securities noted that Malaysia’s home and living products industry is supported by steady growth in household expenditure, with mean monthly household consumption expenditure rising from RM4,080 in 2016 to RM5,566 in 2024, representing a CAGR of approximately 3.9%.
It added that household formation, renovation activity and product replacement needs continue to support demand for home appliances and kitchen solutions.
