Story: F&N's strong 1Q08 results were in line with our expectations.
Topline grew by 19% to S$1.32bn, from S$1.11bn. Attributable net profit
ended at S$108.6m, up by 40% from a year ago.
Point: All its business divisions, except for Printing and Publishing,
delivered growth. Its soft drinks (+12%), dairies (+140%), breweries (+17%)
and investment properties (+29%) divisions were the main contributors to
its topline growth.
Relevance: As highlighted in our previous report on 14 Nov, we expect the
Group to continue to deliver positive performances over the next few
quarters, backed by the progressive recognition of its sold-out development
property launches in the past year. In addition, we believe that the Group
is well-positioned in the mid-end residential market in Singapore with a
total landbank of close to 3,000 units. This is also complemented by its
relatively large landbanks of over 34 m sq ft overseas. Maintain BUY; TP:
S$7.18 (previously S$7.40) as we peg the listed entities at current market
values. Our TP is based on sum-of-the-parts with a 10% premium on its
property RNAV in lieu of its huge landbanks in Singapore and overseas.
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