Saturday, 4 August 2018

F&N shares rise on higher profit

F&N shares rise on higher profit

Friday, 3 Aug 2018

KUALA LUMPUR: Shares in Fraser & Neave Holdings Bhd (F&N) rose on Friday boosted by a 51% profit increase in the third quarter ended June 30.

The counter rose 16 sen, or 0.43% to RM37.56. In the past one year, F&N shares have appreciated 54.09%.

F&N’s third quarter net profit jumped 51% to RM104.5mil, from RM69.37mil a year earlier, thanks to positive contributions from Malaysia and Thailand.

Revenue, however, was slightly lower by 1% to RM1.03bil, from RM1.04bil in 3QFY17.

Kenanga Research said F&N’s 9M18 core net profit of RM318.8mil (-6%) and the absence of dividend was within expectations.

New products are seen as key drivers for the group, amidst slow spending trends and high production costs.

“The high cost, however, could be mitigated by the group’s improving efficiency following capital investments and restructuring,” it said.

Kenanga has maintained its underperform and target price of RM32.15 on F&N.


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