Tuesday, February 8, 2011

F&N advances on strong earnings

KUALA LUMPUR: Shares of Fraser & Neave Holdings Bhd (F&N) advanced to RM15.30 in late morning trade on Tuesday, Feb 8 after its net profit for the first quarter ended Dec 31, 2010 rose 37.74% to RM107.08 million from RM77.74 million a year ago.

At 11.32am, F&N rose 32 sen to RM15.30 with 60,900 shares done.

The FBM KLCI rose 5.74 points to 1,541.34. Turnover was 1.39 billion shares done valued at RM896.35 million. There were 358 gainers, 312 losers and 283 stocks unchanged.

AmResearch said it reaffirmed its BUY rating on F&N with an unchanged fair value of RM17.20/share, based on a target PE of 18 times CY11F earnings. The 18 times PE is close to its three-year historical PE average of 17 times.

'Notwithstanding some moderation in margin going forward on higher input costs particularly sugar, the sustained volume expansion should provide a comfortable buffer against volatile raw material prices,' it said.

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