F&N

F&N: CIMB maintains O/p with and lifts TP to $10.03 TP. House note that while share price has risen by 14% (from the low point) since the lifting of the trading halt in Apr, estimate that current share price still implies a 41% discount to its property RNAV. This is considerably wider than its big cap peers (average of 16%) and average of 30% seen in the small-mid cap developers under coverage. While investors’ attention in the last nine months have been drawn towards the takeover saga, the group has continued to chalk up unit sales in SG and Aus. Unbilled presales remains robust at $3.3b, expected to underpin development earnings for the next few years. Income from its investment properties has also been consistently rising. Note that TCC/Thai Bev have yet to reveal their strategy for FNN. This uncertainty will remain the key overhang for the stock, but think possible reasons to keep FNN listed is for TCC to use it as 1) the group’s listed vehicle to grow its regional property business and 2) as a platform for future capital fund raising. House believe corporate actions will not end here. As a stock, FNN should remain investable with current free float of over US$1b and a SOP value backed by an estimated net cash per share of $3.10 in FY13.