MIDF Research maintains Neutral on F&N, target price RM17.52

Business & Markets 2013
Written by Cynthia Blemin of theedgemalaysia.com
Thursday, 09 May 2013 11:09
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KUALA LUMPUR (May 9): MIDF Research has maintained its Neutral
rating on Fraser & Neave Holdings Bhd (F&N) at RM17.98 with a target
price of RM17.52 after the company said it was looking to launch its
carbonated cola flavoured drink in Peninsula Malaysia in 1HFY14.
In a note Thursday, the research house said that following the "test-run"
in East Malaysia, F&N was now planning to launch My Cola in Peninsula
to compete head on with its partner-turned-rival famous Coca-Cola
among others.
It said the management also plans to launch a second carbonated cola
flavoured drink, Est Cola, to boost market share in the soft drinks
segment.
“According to management, this is one of the potential synergies of
being part of the TCC/Thai Beverage group.
"If launched, F&N will effectively be tapping on TCC/Thai Beverage to boost its offerings of potentially cheaper carbonated
cola flavoured drinks in an effort to woo consumers," said MIDF Research.
The research house however maintained its Neutral stance on the stock, given that the success of both My Cola and Est Cola
was not yet observable.