Fraser and Neave

[millionairemind]

Brokers' Take

Fraser and Neave Limited
March 31 close: $4.80
DMG RESEARCH, March 31

INITIATE coverage with 'buy' at $5.30. We are initiating coverage of Fraser and Neave (F&N) with a 'buy' rating and target price of $5.30, pegged at parity to our sum-of-the-parts valuation, which implies 12 per cent upside potential from current levels.

Trading at a P/B of 1.1x, we believe F&N's present valuation appears undemanding vis-a-vis the 1.6x exhibited in CY2007, especially given its sizeable unbilled sales, which could potentially lower net gearing from current 0.48x and resilient earnings from consumer businesses.

Sterling unbilled sales, sizeable unsold landbank. By our estimates, F&N currently has unbilled sales of about $2.3 billion to be recognised through FY2012, which should support forward earnings and cushion any unexpected downturn.

While there were concerns over diminishing landbank, recent award of an executive condominium site has expanded F&N's portfolio to a sizeable 2.4 million square feet (sf) in unsold gross floor area (77 per cent mass), which should help it benefit from the property upcycle and avoid overpaying for land.

Despite historically high mass prices and continued government supervision, we expect demand here to remain strong due to tight completed supply, strong household balance sheets and improved economy.

Timely asset divestments serve as catalyst. Following the recent divestments of $634 million in commercial properties, we believe F&N could monetise additional assets in light of improved credit and economic conditions, which could provide a re-rating of the counter.

Some of these assets include seven office/retail properties (net lettable area: 1.9 million sf and value: $2.2 billion by our estimates), as well as its Glass Containers and Publishing & Printing businesses.

Indochina and economic recovery spur food and beverage growth. APB's $484 million purchase of Indonesia's Bintang beer and a leading New Caledonian brewer will provide immediate earnings accretion. Further growth impetus should herald from its about 50 per cent Ebit exposure to growing Indochina.

Expiry of Coca-Cola's franchise after FY2011 should bear minimal impact, due to potential earnings stream from five-year exclusive distribution of Red Bull, 100 per cent income recognition from marketing and distribution of some soft drinks in Singapore and introduction of 50 new categories and products. The new Rojana plant should support Dairies' venture into burgeoning Indochina.
BUY

[LenaHuat]

Property launch update: Flamingo Valley. We expect F&N to launch itsfreehold 393-unit development sometime around May. Given recent sales at Siglap V (ASP of S$1,400psf), we have raised our expected selling pricesconservatively to S$1,300psf, a slight discount given the larger-sized units. For every S$100 ASP increase, RNAV is raised by 2 Scents. At S$1,300psf, we estimate the project will reap a very healthy 40% margin.

From DBS research dated 29 March 2010.

[millionairemind]

May 14, 2010, 5.52 pm (Singapore time)

F&N's Q2 net profit up 88.8%, declares 5 cts/shr interim div

By ANGELA TAN

Fraser and Neave Limited (F&N) said on Friday that its net profit for the fiscal second quarter ended March 31, 2010 rose 88.8 per cent to S$170.33 million compared to a year ago.

Revenue surged 21.20 per cent to $1.37 billion.

F&N said all business units contributed to its positive performance.

Its property division saw strong rental income, progressive recognition of pre-sold property projects and recovery in its core residential markets.

Food & beverage saw strong consumer demand, while its breweries earnings soared.

Its directors have declared an interim dividend of 5 cents per share, up from 3 cents from the previous year, to be paid on 25th June 2010

[winston]

FRASERS AND NEAVE - Beverage-to-property conglomerate Frasers and Neave said on Monday it will sell its entire 100 percent shareholding interest in F&N Vietnam Foods Company for $3.8 million.

[iam802]

Kirin: not eyeing more than 14.7% in Fraser&Neave

http://www.reuters.com/article/idUSTFA00670220100726

[winston]

PE 19; Yield 2.4%

Fraser and Neave (FNN SP, $6.34, HOLD, TP $6.72)

F&N has been an outperformer since our rating upgrade in August 2010. Property pre‐sales look promising and this segment will continue to dominate the catalysts in the near term.

We raise our target price to $6.72 to factor in the group’s latest land acquisition but downgrade our rating on the stock from BUY to HOLD on valuation grounds.

http://www.remisiers.org/cms_images/res ... c_Reit.pdf

[winston]

Not vested.

RESEARCH ALERT-Nomura ups F&N target to S$7.18, keeps "buy"

SINGAPORE, Oct 15 (Reuters) - Nomura has upgraded its target price for Singapore's food & beverage and property conglomerate Fraser and Neave (F&N) to S$7.18 from S$6.55 and kept its "buy" rating.

STATEMENT: Nomura said it has raised F&N's target price to reflect the higher valuation for the company's listed subsidiary, such as Asia Pacific Breweries , and recent property purchases.

The broker noted that F&N is expanding its food and beverages footprint in Southeast Asia, especially for its soft drinks products in Indonesia and Thailand, and working with new strategic shareholder Kirin <2503.T> to launch new products.

Shares of F&N fell 0.81 percent to S$6.15 at 0102 GMT but have risen 46 percent so far this year.


Source: Reuters

[winston]

Not vested

FRASER AND NEAVE - Property and food and beverage conglomerate Fraser and Neave said on Friday its attributable profit for its fourth quarter ended September 30 fell 23 percent to S$144.5 million from a year ago.


Source: Reuters

[winston]

Not vested. From Kim Eng:-

Fraser & Neave (FNN SP, $6.21, BUY, TP $8.98)

A spring-cleaning for F&N is long overdue, in our view. 

Therefore, 2011 will be a good time for management to consider splitting up the conglomerate by relisting
its property arm, selling non-core businesses, investing in global F&B brands or even privatising F&N 
Holdings Bhd. 

We estimate the sum of the values of these businesses as separate entities should be 26% higher compared 
to the conglomerate approach. Reiterate BUY.   

http://www.remisiers.org/cms_images/ssu08122010ke.pdf

[winston]

Not vested. From DBS:-

F&N’s share price has retreated c.8% since our analyst downgraded in Nov’10.

F&N offers more value now with c.18% total return upside to our revised target price of S$7.00 (Prev S$ 6.90).

With Kirin’s increasing its stake to 15%, we believe this could provide support to share price, and possibly provide catalyst for restructuring over the medium to long
term.

On the property front, we believe the recent property measures could largely have been priced in. Response to the latest launch looks decent. Hence, our analyst is upgrading F&N to BUY.