F&N

F&N: Deutsche re-instates at Buy with TP $7.06. Says FNN is uniquely positioned to benefit from rising SE Asian consumption growth via its market leading brewery and soft drink operations, while strong pre-sales and recurrent earnings continue to drive strong cash flows and opportunities for land bank restocking and dividend growth.
Sees catalysts, as the end of the Coca-Cola bottling agreement will allow FNN to grow new export markets such as Indonesia and Vietnam, while APB continues to develop and consolidate its market leadership position across Asia via acquisitions and expansions. Projects FNN’s consumer division to grow 10-13% over the next 1-3 years, on growing exports and margin recovery and as sugar prices and the competitive landscape normalize.
Adds, active capital recycling (sales of its publishing and hospitality arms) and synergies with Kirin may also unlock further shareholder value.
Notes, valuation is attractive at a 24% discount to RNAV, wider than its long-term average of 15%.