F&N

F&N: DBSV upgrades to Buy with $6.50 TP. House note that as shareholders’ value is unlocked through dividend-in-specie of its property unit, Frasers Centrepoint Limited (FCL). Its JV partner in Myanmar Brewery Limited (MBL) has issued a notice of arbitration on FNN’s 55% stake. The outcome is unknown at this stage, but believe in the worst case scenario, impact on RNAV is low, at 2.5%. Stripping out the estimated value of F&B, estimate that FCL is trading at a steep 47%/27% discount to RNAV and book value, higher than the property sector’s average of 31% and 5%, despite FCL’s established position. House revised TP to $6.50 (Prev $9.52), after incorporating the recent capital distribution ($3.28/share).