Published: Wednesday August 8, 2012 MYT 10:41:00 AM
F&N slumps on weaker Q3 earnings
KUALA LUMPUR: Shares of Fraser & Neave Holdings Bhd (F&N) fell to a low of RM19.66 on Wednesday after reporting weaker third quarter earnings, following the cessation of its Coca-Cola products business.
At 10.25am, it was down 14 sen to RM20.20. There were 46,900 shares traded at prices ranging from RM19.66 to RM20.24.
The FBM KLCI rose 3.61 points to 1,634.73. Turnover was 289.21 million shares valued at RM262.22mil. There were 217 gainers, 216 losers and 230 counters unchanged.
F&N had on Tuesday reported its third quarter net profit slumped 33.7% from RM77.85mil a year ago to RM51.63mil as the company. F&N's revenue for the third quarter, however, was up 1.6% at RM896.7mil from RM882.5mil a year ago.
Its net profit for the first three quarters stood at RM200.43mil, 36.8% lower than RM316.92mil in the corresponding period a year ago.
CIMB Equities Research said F&N's nine months core net profit of RM158.5mil was broadly in-line, making up 78% of its forecast.
"A bid by Kirin or Coke for its F&B assets could lead to an M&A premium. However, this remains unconfirmed, and we retain our Underperform rating," it said.