KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&N) continued to be among the top gainers on Friday, May 6, underpinned by its strong earnings and dividends.
At 3.39pm, F&N was up 30 sen to RM18.70 with 60,800 shares done, bucking the weaker market.
The FBM KLCI was down 7.36 points to 1,513.82. Turnover was 602.43 million shares valued at RM908.24 million. Losers beat gainers 473 to 203 while 266 counters were unchanged.
The company posted net profit of RM131.98 million in the second quarter ended March 31, 2011 versus RM85.23 million a year ago, boosted by the sale of a college building.
Revenue was RM1 billion compared with RM872.09 million. Earnings per share were 36.80 sen versus 23.90 sen. It declared 35 sen in dividends.
AmResearch reiterate its BUY recommendation on F&N and lifted its fair value from RM17.40/share to RM22.70/share, based on a PE of 18 times CY11F earnings.
'We believe a small premium is justified given F&N's strong earnings profile within the non-discretionary food industry against a backdrop of rising material costs, as underpinned by its market share leadership position and brand equity strength,' it said.
The research house said though its valuation is at the higher-end of the stock's three-year PE band, it is still at a discount to peer Nestle Malaysia Bhd's current PE of 25 times, at parity to the five-year average historical discount.''
At 3.39pm, F&N was up 30 sen to RM18.70 with 60,800 shares done, bucking the weaker market.
The FBM KLCI was down 7.36 points to 1,513.82. Turnover was 602.43 million shares valued at RM908.24 million. Losers beat gainers 473 to 203 while 266 counters were unchanged.
The company posted net profit of RM131.98 million in the second quarter ended March 31, 2011 versus RM85.23 million a year ago, boosted by the sale of a college building.
Revenue was RM1 billion compared with RM872.09 million. Earnings per share were 36.80 sen versus 23.90 sen. It declared 35 sen in dividends.
AmResearch reiterate its BUY recommendation on F&N and lifted its fair value from RM17.40/share to RM22.70/share, based on a PE of 18 times CY11F earnings.
'We believe a small premium is justified given F&N's strong earnings profile within the non-discretionary food industry against a backdrop of rising material costs, as underpinned by its market share leadership position and brand equity strength,' it said.
The research house said though its valuation is at the higher-end of the stock's three-year PE band, it is still at a discount to peer Nestle Malaysia Bhd's current PE of 25 times, at parity to the five-year average historical discount.''
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