Stock Name: F&N
Company Name: FRASER & NEAVE HOLDINGS BHD
Research House: MIDF
KUALA LUMPUR: MIDF Research has upgraded Fraser & Neave Holdings Bhd (F&N) to a buy with a higher target price of RM12 (from RM10.60) and said the company's 1HFY10 net profit grew 56.4% year-on-year to RM162.9 million, accounting for 69% and 60% of MIDF's and consensus full year numbers.
Excluding the RM10 million charges recognised in 2QFY09 due to the closure of glass plant in Petaling Jaya, MIDF estimated that the earnings growth was about +43% y-o-y.
The commendable results were mainly due to the higher soft drinks sales, better-than-expected overall profit margin and lower minority interest, it said.
"We are rolling over our valuation into FY11 numbers but with a lower implied PER of 14.5 times as compared with 16 times previously. As such, we are upgrading our call for F&N to buy with a higher target price of RM12 (previously RM10.60), based on 14.5 times FY11 EPS.
"We believe the downside is fairly limited, cushioned by the 5.1% net dividend yield," it said.
Company Name: FRASER & NEAVE HOLDINGS BHD
Research House: MIDF
KUALA LUMPUR: MIDF Research has upgraded Fraser & Neave Holdings Bhd (F&N) to a buy with a higher target price of RM12 (from RM10.60) and said the company's 1HFY10 net profit grew 56.4% year-on-year to RM162.9 million, accounting for 69% and 60% of MIDF's and consensus full year numbers.
Excluding the RM10 million charges recognised in 2QFY09 due to the closure of glass plant in Petaling Jaya, MIDF estimated that the earnings growth was about +43% y-o-y.
The commendable results were mainly due to the higher soft drinks sales, better-than-expected overall profit margin and lower minority interest, it said.
"We are rolling over our valuation into FY11 numbers but with a lower implied PER of 14.5 times as compared with 16 times previously. As such, we are upgrading our call for F&N to buy with a higher target price of RM12 (previously RM10.60), based on 14.5 times FY11 EPS.
"We believe the downside is fairly limited, cushioned by the 5.1% net dividend yield," it said.
No comments:
Post a Comment