17 June 2014

F&N - Road Show with CLSA Summary - June 2014

After the bidding war of APB (holding company of Tiger beer) finished, the F&N company which is now a subsidiary of Thai Beverages had gone through a series of leadership restructuring and divestment of property division and now it is focusing on beverages especially non-alcohol beverages division. The latest news was to acquire a company in Malaysia to further expand its product range and distribution network to South East Asia countries.

F&N has several brands under itself, which includes but not limited to:

  • F&N
  • 100 Plus
  • Seasons
  • NutriTea
  • FruitTree
  • Magnolia
  • NutriSoy
It is a leading soft drinks & dairy company mainly in South East Asia (Malaysia, Singapore, Thailand etc), achieved S$2.3 Billion sales in FY2013 and EBITDA S$270 Million and has market cap of more than US$3 Billion.

Below are some of the snapshots from presentation slides of road show: 

Top 10 Listed Food and Beverage Companies in SEA

My Opinion

With expected PE of near 30 X (excluding fair value gain of investment properties or other non-recurring items), I think F&N is a bit over valued given current market shares price. It is good if we could purchase the shares at below S$2.00.

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