F&N

F&N: Annouced the opening of its new $110m canned milk plant in Thailand, advancing grp’s plans to become a leading and innovative f&b FMCG player in APAC. Facility will play pivotal role for F&N to grow presence in Thailand and Indochina and seize export opportunities in the fast-growing mkts of Indo and MENA…..

Grp plans to double rev of Thai dairy operations to $700m by 2016, buoyed by continuous mkt penetration and export demands beyond Indochina. Thai plant will serve as a blueprint for Grp’s new $150m plant at Klang in Msia, scheduled to complete in 2H11 which will collectively make the Dairies division of the F&N Group the largest canned milk producer in the world…..

For 1H11, the Thai dairy business registered a rev of about $200m, contributing 24% to total revenue for F&N Holdings Bhd. We note that majority of street has buy rating on grp with a mean TP of $7.43.