KUALA LUMPUR (May 8): CIMB Research has maintained its Underperform rating on Fraser & Neave Holdings Bhd at RM19 and cut its target price to RM13.40 (from RM13.50 previously) and said F&N’s interims were a letdown as core net profits came in at just 27% of its full-year forecast.
In a note Tuesday, the research house said that aside from topline weakness arising from the Thai floods, higher raw material prices took a bite out of margins.
“The poor results reinforce our Underperform rating.
“Even though we should see a stronger 2H as Dairies Thailand resumed production in Mar, we cut forecasts to account for pricier raw materials. This lowers our DCF-based target price,” it said.
In a note Tuesday, the research house said that aside from topline weakness arising from the Thai floods, higher raw material prices took a bite out of margins.
“The poor results reinforce our Underperform rating.
“Even though we should see a stronger 2H as Dairies Thailand resumed production in Mar, we cut forecasts to account for pricier raw materials. This lowers our DCF-based target price,” it said.
