Thursday, June 14, 2012

Fraser & Neave Holdings: Maintain Sell - Hitting the Reset Button

SELL maintained. 2HFY9/12 should be a better half for F&N, with Dairies Thailand having resumed optimum production since end-Apr 2012. The offset, however, is that the loss of Coca-Cola has had a greater-than-expected negative impact on contributions from the soft drinks division and consequently, we have cut our core earnings forecasts for FY9/12 and FY9/13 by 25% and 14% respectively. Our TP of MYR15.40 is nevertheless maintained on the back of a higher PER target of 18.5x (16.5x previously), in line with peers.

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Source: Maybank Research - 14 June 2012

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