Result* F&N

Maintain HOLD. F&N reported 2Q10 net profit of $236m included a $26m fair value gain on investment properties injected into FCT and a $44m gain from dilution in interest in FCT. Adjusted for these items, 1H10 net profit of $306m formed 56% of our full year forecast. We keep our FY10 forecast and raise RNAV to $4.71 factoring in higher mark-to-market for APB. In our view, F&N Bhd (only13.5x PE) offers a more direct play.