F&N

F&N: Reported 3Q11 results which were in-line.
Rev at $1.4b, +1.6% yoy and qoq and Net Profit at $186.7m, +43% yoy and +30.3% qoq. EBIT Margins were also broadly stable at 17% vs 18% yoy.

Rev led by F&B rev, +4%, printing -7% and ppty -1%. Within F&B, soft drinks -6%, and brewing +9%. Ppty, investment property rev +10%, and dev rev -3% due to weaker sales in Aus and China. Net Profit surge, partly due to exceptional gains of $50m on disposal of grp's interest in Kingway Breweries in China. Excluding non-recurring items, Net Profit would have been -5% yoy.

Going forward, Kirin has not increased its shareholding any further since 1Q11 when it topped up from 14.7% to 15.0% and it remains unclear what shareholding level Kirin will eventually go to, and over what timeframe. HSBC maintain O/w but reduce TP marginally, to $7.15 from $7.16, due to mark-to-market of listed investments.