KUALA LUMPUR (Nov 10): Fraser & Neave Holdings Bhd (KL:F&N) is set for record profits next year, analysts said, as shares of the food and beverage company rose on Monday.
The recently-closed financial year met expectations, and the earnings outlook remains resilient with the company projected to make over RM560 million in net profit for the 12 months ending Sept 30, 2026 (FY2026), according to the median forecast of six research houses tracked by Bloomberg.
“We expect F&N to post a mild sales recovery in FY2026, supported by a gradual pick-up in both domestic and export sales,” said CIMB Securities in upgrading the stock to “buy”.
Key revenue drivers include new product launches, and stronger export sales to Cambodia following the peace accord between Thailand and Cambodia, which should benefit its Thai operations, the house flagged.
The consensus is now unanimously bullish on the stock following CIMB Securities’ latest upgrade. Shares of F&N rose over 4% to RM28.72 on Monday, snapping a three-day losing streak.
F&N has risen more than 25% from its April lows during the global market turmoil. The average target price is now RM34.07, implying a potential upside of nearly 19% from the current price.
In the near term, steady domestic demand aided by fiscal support measures, such as Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah cash handouts, and a “favourable input cost environment, should sustain earnings momentum,” MBSB Research said.
Further, F&N is well-positioned to benefit from another round of RM100 cash aid starting in mid-Feb 2026, as well as rising tourist arrivals and stronger out-of-home beverage consumption during Visit Malaysia 2026, said Kenanga Investment Bank.
On Friday (Nov 7), F&N had reported a net profit of RM508.47 million and proposed a final dividend of 35 sen per share, or a distribution of RM128.4 million, to shareholders at an entitlement date to be determined later. That’s an increase from 33 sen per share in the same quarter last year.
Including the latest planned payout, dividends for the year would total 65 sen per share, up from 63 sen in FY2024.