Fraser and Neave

[winston]

Not vested. From DBS:-

• Full year results on 12 Nov expected to be within estimates (S$335m, -19% yoy) on earlier write-offs
• $2.1bn of property sales locked in till 2011; estimated to account for c.80% of RNAV (Singapore devt. properties)
• F&B - Target to double non-beer F&B profit in next 5 years
• Reiterate Buy, sum-of-parts TP: S$4.80.

FY09 results on 12 Nov.
We expect earnings to be within our estimates, when it is released on 12 Nov. We are looking at bottomline of S$335m, down c.19% yoy largely on asset impairment and write-downs during 9M YTD.

S$2.1bn unrecognized sales; landbank a key focus. We estimate that the Group has S$2.1bn unrecognized revenue from property development projects sold in Singapore, supporting topline till 2011/12.

This is estimated to account for c.80% of Singapore development property RNAV surplus in our valuation. Landbanking is key, but management is in no hurry given the expected availability of land from Government’s confirmed land sales programme.

Northpoint 2 injection soon?
With market recovery, Northpoint2 is likely to be injected into Frasers Centrepoint Trust soon. This could provide cash inflow of between S$130-170m, to be recycled for further development.

Target to double non-beer F&B profits in 5 years.
Management is looking to grow soft drinks product repertoire and focus on exports, post expiration of Coke bottling agreement. The 20-month transitional agreement from Jan’10 will allow F&N to pursue opportunities currently prohibited. A newly commissioned dairy plant in Thailand will provide capacity to build presence in Indochina and Thailand.

Maintain Buy, TP: S$4.80. Our TP is raised marginally to S$4.80 based on 10% discount to revised RNAV of S$5.45, on higher market value of listed entities. We believe market is undervaluing counter, which is trading at 1x P/B, while a large portion of
development projects has been sold.

[millionairemind]

Published November 13, 2009

F&N's Q4 earnings treble to $190.6m

Property division ends on high note, buoyed in part by sale of Inpoint Mall

By JOYCE HOOI

FRASER and Neave's net profit nearly tripled from $66.7 million to $190.6 million for the last quarter of the fiscal year ended Sept 30.

Revenue for the fourth quarter rose 23 per cent from $1.3 billion to $1.6 billion, driven by the group's expansion activities.

For the entire fiscal year, the group saw a 17.5 per cent dip in net profit from $436 million to $359 million, compared to restated figures from the previous fiscal year.

However, excluding the fair value adjustment of investment properties and exceptional items, net income for the fiscal year stood at $466 million - a 25 per cent increase over the previous corresponding period.

Revenue for the year inched up 7 per cent to $5.3 billion.

For the quarter, the group's property division finished on a high note, buoyed by the sale of Inpoint Mall and positive rental reversions and high occupancy rates from commercial assets.

The property division's revenue and earnings rose 76 per cent and 48 per cent respectively for the quarter, the strongest improvement for the year.

'The divestments of non-core assets like Inpoint Mall and the Haitang Bay site, for example, enabled us to recycle the capital into new projects with higher returns,' said chairman of Fraser and Neave Lee Hsien Yang.

'The closure and sale of our dairy facilities in Vietnam and China are a result of the group's plan to exit businesses that we assess unable to provide adequate returns for our efforts.' he said.

The group's soft drinks divisions revenue grew 7 per cent, driven by promotional activities and a better product mix, while its dairies revenue fell 6 per cent.

The board has recommended a final dividend of 10.5 cents per share, bringing the total dividend for the year to 13.5 cents, the same as the previous year.

The 13.5 cents represents a payout of 40 per cent of attributable profit, lower than last year's payout of 51 per cent.

'Although we have successfully navigated the credit crunch and market illiquidity, the global market condition remains fragile. The board feels that it therefore prudent for the group to maintain dividend at the same level,' Mr Lee said.

Earnings per share for the group stood at 25.8 cents compared to 31.2 cents a year ago, after taking into account fair value adjustments and exceptional items.

The group's shares closed two cents higher at $3.85 yesterday.

[winston]

Not vested. From DBS:-

F&N’s 4Q and FY09 results are slightly above our expectations (c.7% above) on strong contribution from its development properties and dairies division.

Going forward, our analyst expects the Group's revenue and PBIT to be relatively secured, supported by stable operations of its F&B business.

[winston]

Not vested. From DBS:-

F & N’s FY09 net profit was above our expectations on higher property development contributions and F&B margins.

F&N has S$1.8bn in unrecognized sales from its development projects in Singapore while its F&B operations should continue to deliver stable growth.

Reiterate Buy, TP: S$4.80.

[winston]

Not vested. From Kim Eng:-

Lack of catalysts to drive share price

At the current share price, F&N is trading close to our RNAV of $4.23 (previously $4.17).

We have raised our forecasts to account for higher F&B margins, particularly dairy which has overtaken soft drinks as the biggest F&B segment, and raised sales assumptions for the China and Australia property business.

However, impact on RNAV is marginal. With dividend yield at just 3.5%, we maintain our Hold call.

[winston]

Not vested.

Aberdeen reducing stake, now at 4.99%

[winston]

Not vested. From Lim & Tan:-

F&N merits a BUY. At $4.04, F&N is trading close to its latest book of $4.01, and offers a reasonable 3.3% yield (based on 13.5 cents paid for ye Sept’09).

Technically, F&N has been stuck in a $3.60-4.10 range for some 6 months, after a strong recovery earlier in the year, when the stock was troubled by the split with Coca-Cola. The 2 companies have since resolved their differences, extending their tieup
till Sept’2011.

[kennynah]

i cant understand how people can be interested in a low beta stock that is ranged bound for 6 months that yields 3.3% dividend? and it doesn't even have options...

[winston]

Noy vested.

F&N sees 56% jump in Q1 net profit By UMA SHANKARI

Fraser and Neave, Limited (F&N) on Thursday reported a 56 per cent jump in Q1 net profit to S$138.4 million from S$89 million a year ago.

Revenue for the three months ended December 31, 2009 rose to S$1.46 billion, an increase of 17 per cent from the same period last year when revenue came to S$1.25 billion.

The conglomerate said that growth was broad-based, with the key businesses of food & beverage (including soft drinks, dairies and breweries) and properties registering higher revenue year-on-year.

Riding on its geographical reach and the strength of its brand portfolio, the F&B division maintained its growth momentum during the quarter, posting an impressive 55 per cent growth in profit before interest and taxation (PBIT) to S$123 million. Properties, buoyed by pre-sold residential developments, also benefited from higher rental and occupancy rates. Properties' profit surged 73 per cent to S$130 million.

Group earnings per share for the quarter nearly doubled to 9.7 cents, and net asset value per share also improved to S$4.07.


Source: Business Times

[LenaHuat]

It's official now:

March 16, 2010, 4.35 pm (Singapore time)

Coke to invest US$302m in M'sia, open new plant
NILAI - Coca-Cola Co said on Tuesday it will build a new bottling plant in Malaysia and invest RM1 billion (US$302 million) over the next five years to boost growth in the Southeast Asian market.

The investment comes as the world's largest soft drink maker gets ready to end its franchise with a local bottler after sales remained stagnant over the years.

Coca-Cola is expected to let its decades-long contract with a unit of Singapore's Fraser and Neave expire in September 2011. The contract, which covers mainly the bottling and distribution of Coca-Cola and Sprite brands, was worth RM421 million a year.

Coca-Cola said in a statement its new facility in the southern state of Negeri Sembilan is expected to be operational before the end of 2011.