F&N (3689) - Stock With Momentum: Fraser & Neave Holdings

By Asia Analytica / The Edge Financial Daily   | July 20, 2016 : 10:36 AM MYT

This article first appeared in The Edge Financial Daily, on July 20, 2016.

Fraser & Neave Holdings Bhd (+ve)

SHARES in Fraser & Neave Holdings Bhd (F&N) (fundamental: 2.1/3, valuation: 1.1/3) fell 0.31% to RM26.10 yesterday, with a market capitalisation of RM9.57 billion, after 1.63 million shares were traded. In comparison, it has a 200-day average volume of 199,570.5 shares.

The company was last picked by our proprietary algorithm in “Stocks with Momentum” on Feb 18; it has risen by 34.54% since. Year to date, its share price has increased by 45.81%.

F&N’s net profit rose 28.49% to RM90.57 million for the second quarter ended March 31, 2016, from RM70.49 million a year ago, as revenue grew 6.31% to RM999.17 million, from RM939.89 million. The group attributed the improvement in performance to higher sales, continuing favourable milk-based global commodity prices of its canned milk products, and improved manufacturing efficiencies.

F&N said after-effects of the goods and services tax appear to be prolonged, and there is an increase in competitors’ offerings in differentiated packaging formats and portfolio expansion, thus increasing consumer choices.

The stock is now trading at a trailing price-earnings ratio of 25 times.

 F&N (3689) - Stock With Momentum: Fraser & Neave Holdings