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F&N set to draw first milk, MIDF positive
Transcript
00:00 We end the week with FNN after it posted its highest earnings in over a decade, with MIDF
00:06 Research keeping it as one of its top picks in the sector.
00:09 Aside from the buy call, it has a RM33.50 target price on the FNB player, implying a
00:15 possible 22% upside.
00:17 FNN's export revenue increased 22% year-on-year to RM1 billion for FY23, and this accounted
00:24 for 21% of the total FY23 group revenue.
00:28 The group observed positive returns from its installation of solar PV panels in Shah Alam,
00:33 Pulau Indah and Bengtong plants, which have helped to offset rising energy costs due to
00:38 increased electricity tariffs.
00:41 FNN also maintained its plan to convert Cocoland's factory in Rawang into a food manufacturing
00:46 hub to consolidate the production of Srinona and Cocoland products.
00:51 The group finalised the specifications for its integrated dairy farm, which will comprise
00:55 a herd of 20,000, with approximately 10,000 dedicated to milking cows.
01:00 This integrated farm will be situated in Gemas Negeri Sembilan.
01:04 Phase 1 will actually focus on producing plain milk, and later it will expand to include
01:09 flavoured and cream products once operations stabilise.
01:12 Also, the commencement of milking has been postponed from the end of 2024 to early 2025
01:19 based on the recommendation to transport pregnant cows only after the summer season.
01:24 Looking at updated Bloomberg data, there are 4 buys and 2 holds on FNN, which means the
01:28 target price works out to RM31.38, which is RM3.90 more than its last close.
01:34 Thanks for watching.