we foresee a valuation rerating ahead when DLM starts to deliver steady earnings growth – supported by the progressive contributions from the Bandar Enstek plant. DLM should also be an appealing proposition to yield-seekers given our anticipation of higher payout ahead. Ascribing a P/E multiple range of 18-20x, which is in line with Fraser & Neave’s (FNH MK, NR) forward valuation but at a discount to Farm Fresh’s (FFB MK, BUY, TP: MYR3.06), we value DLM at MYR46.40-51.60.

Source: RHB Securities

Dutch Lady Milk Industries - Returning To Its Nourishing Best

Investment Merits

Undemanding valuation for a dominant household dairy name with strong brand equity amid steadily rising dairy consumption

Resumption of earnings growth after the complete transition to new production facilities

Exciting potential of the Bandar Enstek plant in expanding total addressable markets and uplifting operational efficiency

Moderated capex and deleveraged balance sheet supporting higher dividend payout fo

14/MAY/2026 RHB research value DLM at MYR46.40-51.60.

Ascribing a P/E multiple range of 18-20x, which is in line with Fraser & Neave’s (FNH MK, NR) forward valuation but at a discount to Farm Fresh’s (FFB MK, BUY, TP: MYR3.06), RHB research value DLM at MYR46.40-51.60.

RHB:DLM should also be an appealing proposition to yield-seekers given our anticipation of higher payout ahead. Ascribing a P/E multiple range of 18-20x, which is in line with Fraser & Neave’s (FNH MK, NR) forward valuation but at a discount to Farm Fresh’s (FFB MK, BUY, TP: MYR3.06), we value DLM at MYR46.40-51.60