F&N

F&N: DB reiterates Buy call & raises TP to $6.55 based on 10% discount to SOTP valuation. Highlights Central Park launch, potential restructuring play & value unlocking by Kirin as key catalysts. Central Park has been soft launched at higher-than-expected prices of A$1,000psf with a 16% take up. With a margin of 50%, this integrated devt comprising 1900 homes & 1m sf of commercial space could reap $1bn profits for the group.

Expect the launch of more residential projects in SG/Australia could lead to re-rating of stock. Recent entry of Kirin at $6.50/share as a strategic shareholder could lead to stronger cooperation/ alliances. F&N is also a potential restructuring play as it could unlock value in its consumer businesses, divesting non-core assets and spinning off its property assets.