F&N

F&N: Deutsche downtrades to Hold with $9.72 TP, noting the End of a Saga. Note that while TCC and ThaiBev have yet to reveal any plans, believe that there are likely to be synergies between FNN and ThaiBev’s consumer divisions. ThaiBev currently lacks a significant carbonated beverage portfolio and has surplus bottling capacity. Adding FNN brands to Serm Suk/ThaiBev’s distribution network could help it tap into a segment that accounts for c.40% of the Thai market. In addition, TCC Land has significant land bank, commercial and hospitality assets, which may be complementary to FNN’s property operations. House revise SOTP estimate to $11.43 (from $11.37) after marking to market FNN’s listed subsidiaries and recent land bank acquisitions. House widened our discount to RNAV to 15% (long-term average) given a lack of visibility on corporate strategy, deployment of APB proceeds, and with TCC having secured majority control. Upside risks: capital returns, accretive acquisitions, synergies with ThaiBev.