Expiry:
Target Price
$2.28
(+30.29%)
NOW:

$F & N(F99.SI) Market has yet to rerate this counter despite stellar results and increased dividends. Expect this to be a star performer for your portfolio into 2020 once markets have finished punting cyclical / O&G counters and rotate their profits into this undervalued gem. Time to start building a core position.

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16 comments
MasterLeong

thaibev results tmr for anyone that is keen, they are major shareholder of FNN

MasterLeong

previously a year ago dbs research report got mentioned a share swap
in which thaibev reduces its position in FPL to increase its position in FNN
however instead thaibev became busy with their string of 4 acqusitions including sabeco so end up never makan FNN thus u see the stock price falling from 3.00 to 1.70 over last 1 year period

this one more of a value play la, its very undervalued but may remain so for a long time

i am comfortable holdin long long as long as earnings and dividends keep increasing 10% or better a year

if fnn is bought out its a bonus to me, if not its fine

Chickie

Reply to @MasterLeong : Again sold down :(

MasterLeong

another catalyst is making new acqusitions
F&N gearing is pretty low at 10%-20% range now, in past agm(read from blog) management got stated before they are comfortable gearing up to 50% to 80% range
considering low rates environment, hope they can find some good deals like the thai starbucks deal
else they add more vinamilk i also fine

another catalyst is growth from mynamar brewary which is new

previously they were force to sell their stake in myanmar market which ended up getting half bil in cash

now they invested 70mil for brewart in myanmar to try repeat the succeed again, all capex already done now is just advertising and delivery to distributors so if can repeat it may eventually growth into a 1bil biz in myanmar, i think the odds are good given their experoence
however the problem lies in time line, it may take 3-5 years so this stock really is for those who seek long term

joelsiew

what is the the substantial ownership breakdown?

joelsiew

Reply to @MasterLeong : at current market cap...2.49bln. the 13% stake is roughly about 300m...I think they can easily do a 500m deal. $2.50....

But it's a bit like OCBC and Great Eastern too...you know it make sense...you don't know how long it will take though.

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MasterLeong

if FNN can go to a PE 20 i happy liao kekeke

TheMAOZD

Expecting a good qoq profit in near term with emerald brewery and strategic stake in Starbucks to show in upcoming quarterly results.

Vinamilk has also shown a resurgence in share prices after gaining a foothold in China market with a major rebranding exercise to cater to Chinese consumers.

Probably one of the best stock to hold right now in a risk off environment. Stable dividend counter operating in a consumer staple sector with clear catalysts on the horizon.

Vested at 1.69 & 1.75.

Leyzzz

Reply to @TheMAOZD : Vested. waiting the boat to left.

zerodownside

Spot on with your analysis. Easier to achieve 30% on this (with much lower risk) as opposed to chasing the hot names at the moment

Chickie

Industry peers Thai Bev and Yeo Hiap Seng for example have PE of 21 and 33 respectively. F&n current PE only 15.88. Based on your target price of 2.28 and final year earnings for F&n, PE will be 21.1. Very achievable once market rerates.

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