F&N

F&N: FYSep10 net profit +27% to $585m. But growth slowed in 4Q10, as rev flat YoY at $1.5b, although PBIT +10% to $258m. F&B was the key driver, with 4Q10 PBIT +51%YoY, buoyed by growth from breweries in IndoChina (mainly Vietnam) and contribution from the PT Bintang acquisition…

Soft drinks posted solid gains while Dairies fell. Mgt commented that it will seek to scale up the F&B business via M&A and organic growth by increasing its food pdts and beverage portfolios….

4Q PBIT from property fell slightly due to decline in property development, and deconsolidation of FCT. Mgt expects softening demand due to recent govt measures in Spore, but thinks earnings should continue to be supported by pre-sold projects and planned FY11 launches…

Remain positive on long term trends in China, target 1000units/yr over medium term. Sees Australia’s housing shortage worsening, plans to deliver existing pipeline with construction of One Central Park, and launch of Queens Riverside Perth in FY11.
Final div of $0.12/sh, bringing full yr div to $0.17 (+26% yoy), translates to 2.6% yield...

At current levels, grp trades at undemanding valuations at 11.2x FY10 P/E and 14.53x Forward P/E, vs historical average of 16.13x.