Fraser & Neave Holdings Bhd (F&N) remains under pressure from weak Indochina operations, with MBSB Investment Bank Bhd (MBSB Research) maintaining its NEUTRAL call but lowering its target price to RM25.71 from RM28.43, while CIMB Investment Bank Bhd (CIMB Securities) retained its HOLD call and cut its target price to RM29.80 from RM30.00.
MBSB Research said it reduced its FY2026F to FY2028F earnings forecasts by 23.2%, 18.1% and 16.1% respectively following weaker-than-expected nine-month results, prolonged weakness in Indochina, higher integrated dairy farm start-up costs and foreign exchange headwinds.
For 3QFY2026, revenue fell 3.8% year-on-year to RM1.20 billion while core profit after tax attributable to non-controlling interests declined 6.1% to RM92.9 million. For the nine months, revenue dropped 5.9% to RM3.73 billion while core profit fell 20% to RM316.5 million.
The main drag remained Thailand and Indochina, where revenue fell 18.4% year-on-year to RM461.8 million amid softer market conditions and prolonged Thailand-Cambodia border closures. This offset stronger Malaysian operations, which saw revenue rise 8.4% to RM736.2 million.
CIMB Securities said nine-month core net profit fell 20.3% to RM317.8 million, missing expectations due to weaker Thailand operations, higher input costs and start-up losses from F&N AgriValley and the new Cambodia dairy processing facility.
Still, CIMB expects modest quarter-on-quarter earnings improvement in 4QFY2026, supported by stabilising Thailand demand, stronger dairy sales and tighter cost controls. F&N’s Cambodia facility is also expected to begin commercial operations, although start-up losses could continue to constrain earnings.
As of 10.20 am, the stock price drops 1.15% to RM27.58.
