FNN

FNN: 3QFYSep12 results in line. Core net profit at $136m, +2% yoy, +31% qoq. Revenue and EBIT grew 4% respectively, driven by firm growth from breweries (EBIT +34% yoy, +1% qoq), and a recovery in its dairies operations (EBIT +11% yoy) following last yr’s flooding in Thailand. This offset declines from its development property business (-19% yoy, +30% qoq) and soft drinks (-81% yoy, -50% qoq). Highlighting the importance of APB, the breweries division accounted for 45% of group EBIT, underpinned by stronger demand from IndoChina (+15%), Oceania (+20%) and SE Asia (+16%). 3Q soft drinks revenues fell 6% due to the loss of the Coca Cola contract, but ex Coca Cola, revenues improved 30% on stronger volumes. Nevertheless operating profit still fell 81% after a restructuring charge. There were no new updates on the offers for APB from Heineken and ThaiBev. Nomura keeps at neutral with TP $9.16, pegged to 5% discount to its SOTP of $9.64. Deutsche maintains Buy, says valuations remain attractive at a 17% discount to its SOTP of $10.35.