Fraser & Neave (F99.SG) is up 0.1% at $9.35, in line with the STI’s 0.2% rise, not reacting much to its fiscal full-year net profit of $835.6 million, down 6.9% on year.
The results were below expectations, Religare Capital says in a note. FY12 core profit of $472 million, down 27% on-year, was only 60% of the house’s forecast, affected by accounting recognition changes, it says.
But it adds, it’s a non-event given the takeover battle, with F&N’s senior executive saying next year’s targets are “moving targets” depending on who becomes the ultimate controlling shareholder.
Religare expects F&N to participate in more Singapore government land sales given its thin land bank, with only two launches planned. It notes China residential sales remained lackluster, but Australia showed some unit-sales rebound.
F&B continued to improve since the Coke breakup and the worst is over at flood-affected Dairy Thailand, it says. “Takeover battle aside, F&N could look to venture into new business with S$5.6 billion cash from APB. We continue to stay Long F&N.”
The stock price appears likely to remain hemmed into a tight range as players await the next salvo in the takeover saga.
No comments:
Post a Comment