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KUALA LUMPUR, May 5 -- Kenanga Research has upgraded its call on Fraser and Neave Holdings Bhd (F&N) to “outperform”, raising the target price to RM33.15 from RM32.55 previously.
In a note today, the research firm said F&N's results for the first half of its financial year 2021 (1HFY21) were within expectations.
F&N’s top-line growth remained consistently robust despite the pandemic lockdowns due to strong export sales, sustained demand for its dairy products and contribution from its recent acquisition, Sri Nona Group, it said.
Kenanga Research added that the company’s earnings before interest, taxes, depreciation and amortisation margins remained fairly stable due to cost discipline and hedging activities.
"While the prospect of a third pandemic wave and travel restrictions is likely to continue to temper with the earnings recovery, we expect the second half to continue to be robust, given the less restrictive lockdowns compared with Movement Control Order 1.0.
"As shown in the last two preceding quarters, top-line continued to be robust and on an uptrend, supported by a resilient in-home consumption," it said.
At 12.12 pm, F&N lost 16 sen to RM29.76, with 24,800 shares changing hands.