Company Coverage
Fraser & Neave Holdings: (FNH MK) 3QFY26: Mixed Quarter But Within Our Expectations
BUY (Maintained)
Current price:
Target price:
Upside:
RM27.90
RM38.70
38.7%
Analyst
Highlights
- Earnings were within our expectations but below consensus estimates. The Cambodia-Thailand border conflict outweighed growth in the key domestic markets.
- Margins were largely intact as Thailand was relatively resilient amid start-up costs arising from its new dairy plant in Cambodia.
- Maintain BUY and target price of RM38.70. F&N earnings are due to gradually recover against a backdrop of bargain valuations.
Analysis
- Within our expectations but below consensus estimates. Fraser & Neave Holdings (F&N) reported a 3QFY26 core net profit of RM93.6m (-1.1% qoq, 8.7% yoy). This brought 9MFY26 core profit to RM299.2m (-24.6%). This is within our expectations but below consensus estimates, accounting for 70% and 64% of our and consensus full-year earnings forecasts respectively. Despite domestic markets registering growth, it is outweighed by the Cambodia-Thailand border conflict dragging on Cambodia sales. Margins were largely intact despite the start-up in dairy plant operations in Cambodia.
Highlights
- Earnings were within our expectations but below consensus estimates. The Cambodia-Thailand border conflict outweighed growth in the key domestic markets.
- Margins were largely intact as Thailand was relatively resilient amid start-up costs arising from its new dairy plant in Cambodia.
- Maintain BUY and target price of RM38.70. F&N earnings are due to gradually recover against a backdrop of bargain valuations.
Analysis
- Within our expectations but below consensus estimates. Fraser & Neave Holdings (F&N) reported a 3QFY26 core net profit of RM93.6m (-1.1% qoq, 8.7% yoy). This brought 9MFY26 core profit to RM299.2m (-24.6%). This is within our expectations but below consensus estimates, accounting for 70% and 64% of our and consensus full-year earnings forecasts respectively. Despite domestic markets registering growth, it is outweighed by the Cambodia-Thailand border conflict dragging on Cambodia sales. Margins were largely intact despite the start-up in dairy plant operations in Cambodia.
BUY (Maintained)
Current price:
Target price:
Upside:
RM27.90
RM38.70
38.7%
Analyst
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