Latest news with #Fraser&NeaveHoldingsBhd
The Star
07-05-2025
- Business
- The Star
Stock trading opportunities amid US dollar weakness
UOB KayHian Research recommended a tactical trading stance focusing on value- driven opportunities. PETALING JAYA: The appreciation of the ringgit versus the US dollar has brought about trading opportunities in Malaysian equities focusing on value amid expectations of de-dollarisation and a broader reallocation of capital toward emerging market currencies. UOB KayHian Research recommended a tactical trading stance focusing on value- driven opportunities amid a moderate upside for Malaysian equities. 'Key beneficiaries include importers and companies with high US dollar debt, while exporters may face margin pressure,' it said. The research house advocated exposure in value stocks backed by sound fundamentals, considering the fluid trading environment as the ringgit's strength represents a significant macro tailwind for corporate earnings, with reallocations towards domestic demand and import-reliant sectors from those reliant on US dollar revenue. Among the potential winners are retail and consumer discretionary stocks like MR DIY Group (M) Bhd and Fraser & Neave Holdings Bhd . Automotive stocks (Bermaz Auto Bhd , Sime Darby Bhd ), aviation (Capital A Bhd ), plantation (Kuala Lumpur Kepong Bhd and SD Guthrie Bhd), healthcare (Duopharma Biotech Bhd ) and others like Axiata Group Bhd , Tenaga Nasional Bhd , Genting Bhd and Genting Malaysia Bhd are also potential winners. 'Most of the key beneficiaries are expected to gain from lower import costs, alongside lower debt servicing cost, given the meaningful US dollar debt exposure. 'That said, the margin improvement in auto sector would still be offset by overall soft demand and market share loss to Chinese competitors,' it noted. Stocks at the losing end of the weaker greenback include exporters from the technology and electronic manufacturing services sectors, commodity-linked stocks such as Press Metal Aluminium Holdings Bhd and OMH Holdings Ltd, as well as glove makers. It said during the last ringgit appreciation cycle in the third quarter of 2024 (3Q24), when the ringgit rose to a peak of RM4.09/US dollar from RM4.66/US dollar between end-July and end-September before rebounding to RM4.49/US dollar by mid-November, retail and consumer stocks emerged as direct beneficiaries during the 3Q24 results reporting season.
Yahoo
04-05-2025
- Business
- Yahoo
Fraser & Neave Holdings Bhd's (KLSE:F&N) Dividend Will Be MYR0.30
The board of Fraser & Neave Holdings Bhd (KLSE:F&N) has announced that it will pay a dividend of MYR0.30 per share on the 30th of May. Including this payment, the dividend yield on the stock will be 2.3%, which is a modest boost for shareholders' returns. Our free stock report includes 1 warning sign investors should be aware of before investing in Fraser & Neave Holdings Bhd. Read for free now. It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable. Based on the last dividend, Fraser & Neave Holdings Bhd is earning enough to cover the payment, but then it makes up 117% of cash flows. The company might be more focused on returning cash to shareholders, but paying out this much of its cash flow could expose the dividend to being cut in the future. Looking forward, earnings per share is forecast to rise by 29.2% over the next year. Assuming the dividend continues along recent trends, we think the payout ratio could be 44% by next year, which is in a pretty sustainable range. View our latest analysis for Fraser & Neave Holdings Bhd Even over a long history of paying dividends, the company's distributions have been remarkably stable. The annual payment during the last 10 years was MYR0.62 in 2015, and the most recent fiscal year payment was MYR0.63. Dividend payments have been growing, but very slowly over the period. While the consistency in the dividend payments is impressive, we think the relatively slow rate of growth is less attractive. The company's investors will be pleased to have been receiving dividend income for some time. However, Fraser & Neave Holdings Bhd has only grown its earnings per share at 4.5% per annum over the past five years. The company has been growing at a pretty soft 4.5% per annum, and is paying out quite a lot of its earnings to shareholders. While this isn't necessarily a negative, it definitely signals that dividend growth could be constrained in the future unless earnings start to pick up again. Overall, it's nice to see a consistent dividend payment, but we think that longer term, the current level of payment might be unsustainable. While Fraser & Neave Holdings Bhd is earning enough to cover the payments, the cash flows are lacking. This company is not in the top tier of income providing stocks. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. As an example, we've identified 1 warning sign for Fraser & Neave Holdings Bhd that you should be aware of before investing. Is Fraser & Neave Holdings Bhd not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
Fraser & Neave Holdings Bhd Second Quarter 2025 Earnings: EPS: RM0.38 (vs RM0.45 in 2Q 2024)
Revenue: RM1.33b (down 1.4% from 2Q 2024). Net income: RM140.3m (down 15% from 2Q 2024). Profit margin: 11% (down from 12% in 2Q 2024). EPS: RM0.38 (down from RM0.45 in 2Q 2024). This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Beverage industry in Malaysia. Performance of the Malaysian Beverage industry. The company's shares are up 3.4% from a week ago. It's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Fraser & Neave Holdings Bhd, and understanding this should be part of your investment process. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
New Straits Times
29-04-2025
- Business
- New Straits Times
F&N stays bullish on RM1.8bil integrated dairy farm breakeven target
KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&N) is optimistic about breaking even within three to five years for its RM1.8 billion integrated dairy farm in Gemas, Negri Sembilan, as it moves forward with plans to expand herd capacity. Chief executive officer Lim Yew Hoe said the first phase involves scaling up to 10,000 milking cows, with the eventual target of 20,000 lactating cows, which is the breakeven point for phase two. "Our RM1.8 billion venture reflects our long-term strategy to reduce reliance on imported dairy and improve self-sufficiency in raw milk supply," Lim said at F&N's financial results briefing here today. "Our primary breakeven target is around 20,000 milking cows, which we aim to reach in phase two. For now, the focus is on achieving 10,000 lactating cows in phase one," he added. To accelerate productivity, F&N imported only pregnant cows, ensuring immediate milk production and a rapid increase in herd population. Lim said the current phase, with a capital expenditure of RM2 billion, is expected to produce 100 million litres of fresh milk annually. "The first batch of 2,500 pregnant cows is already on-site, occupying the initial capacity. The full ramp-up across all facilities is expected to take about three years, in tandem with progressive cow deliveries and milk production cycles." F&N has set aside RM200 million from the investment to buy the estate in Gemas and allocated RM600 million for infrastructure development, while less than RM100 million has been spent on procuring the initial batch of cattle. Feed cost optimisation is another crucial component of the project, as F&N has planted corn silage over 1235.5 acres and plans to double this acreage by next year. "Malaysia's climate allows us to plant 2.5 cycles a year compared to the US's single cycle. That helps with feed efficiency and could even give us a lower cost structure than American farms. "However, full self-sufficiency in feed, targeted at 40 per cent of total dietary needs, will only be achievable by 2026," Lim said. The Gemas farm incorporates cutting-edge animal welfare features to enhance productivity and reduce stress, with facilities including noise-dampening fans, soaker cooling systems, and rubber mattresses designed to mimic premium bedding. "We have invested heavily in comfort technology. The cows aren't stressed. This will translate to better productivity and lower mortality rates," Lim said. The company has chosen Chilean cattle for their high daily milk yield, comparable to US breeds. "Chilean cows are genetically closer to the American Holstein and deliver higher daily milk yield than Australian or New Zealand breeds. "Lower-yielding cows would require more barns, negatively impacting the internal rate of return," he added. F&N is also leveraging incentives from the Finance Ministry, allowing for tax offsets proportional to the scale of its capital investments. Biological assets, including cows, are valued at fair market rates, with gains or losses reflected in the cost of goods sold. "We can confirm we are accounting for biological assets such as cows based on fair value, with changes hitting cost of goods sold depending on productivity and market value." "Future biological asset gains or losses will be reflected in accordance with prevailing accounting guidelines," Lim said. Looking beyond Malaysia, F&N is establishing a dairy processing plant in Cambodia under its Thai subsidiary. The decision to expand into Cambodia leverages the group's established market base and presents lower entry barriers compared to larger markets like Vietnam. "The Cambodian facility aligns with our overall dairy expansion strategy and complements our market strength in the region," Lim said. Lim also addressed the broader vision of the project, stating that each cow will have a productive life cycle of three to five years, after which they will be retired. Male calves will be raised for additional purposes, contributing to a combined output of up to 10,000 animals annually in phase two. Additionally, the farm will produce tens of thousands of tonnes of corn grain and animal feed to support its operations and enhance self-sustainability. "The Gemas farm is expected to produce 200 million litres of fresh milk annually at full scale, reinforcing F&N's role as a leader in Malaysia's dairy industry and its contribution to the nation's food security agenda," Lim stated. Meanwhile, the group is on track to commission its new beverages plant in Penang by August 2025, a move aimed at enhancing service efficiency for the northern Peninsular Malaysia markets. The facility will produce carbonated soft drinks and drinking water, reducing reliance on distribution from the main plant in Shah Alam. "The newly installed production capability in Penang achieves both the objective of better serving the local markets and reducing our carbon footprint," Lim said. With its innovative approach, strategic investments and clear long-term vision, the company is poised to navigate challenges and emerge as a key player in the regional dairy sector.
Yahoo
28-04-2025
- Business
- Yahoo
Does Fraser & Neave Holdings Bhd (KLSE:F&N) Deserve A Spot On Your Watchlist?
Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away. So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Fraser & Neave Holdings Bhd (KLSE:F&N). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. We check all companies for important risks. See what we found for Fraser & Neave Holdings Bhd in our free report. Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Over the last three years, Fraser & Neave Holdings Bhd has grown EPS by 15% per year. That's a good rate of growth, if it can be sustained. It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. The music to the ears of Fraser & Neave Holdings Bhd shareholders is that EBIT margins have grown from 11% to 14% in the last 12 months and revenues are on an upwards trend as well. Ticking those two boxes is a good sign of growth, in our book. You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers. View our latest analysis for Fraser & Neave Holdings Bhd The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. While crystal balls don't exist, you can check our visualization of consensus analyst forecasts for Fraser & Neave Holdings Bhd's future EPS 100% free. It should give investors a sense of security owning shares in a company if insiders also own shares, creating a close alignment their interests. So it is good to see that Fraser & Neave Holdings Bhd insiders have a significant amount of capital invested in the stock. To be specific, they have RM57m worth of shares. That's a lot of money, and no small incentive to work hard. While their ownership only accounts for 0.6%, this is still a considerable amount at stake to encourage the business to maintain a strategy that will deliver value to shareholders. One important encouraging feature of Fraser & Neave Holdings Bhd is that it is growing profits. To add an extra spark to the fire, significant insider ownership in the company is another highlight. These two factors are a huge highlight for the company which should be a strong contender your watchlists. Now, you could try to make up your mind on Fraser & Neave Holdings Bhd by focusing on just these factors, or you could also consider how its price-to-earnings ratio compares to other companies in its industry. There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of Malaysian companies which have demonstrated growth backed by significant insider holdings. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
