DBS Vickers Securities in a Feb 10 research report says: "Core net profit inched up 2% y-o-y although revenue dipped 11%. EBIT also dipped 2% to $264.3 million due to lower contribution from property development (-20%), dairy products (-84%) and soft drinks (-57%). Net asset value (NAV) is $4.99 per share.
"Despite hiccups in 1QFY12, development profits should pick up q-o-q, while its Thai diaries plant will gradually recommence production. Insurance claims will cover financial losses incurred during the recent floods in Thailand.
"The Group’s diversified revenue structure and its F&B and investment properties will continue to offer stability vis-à-vis cyclical development properties. Current valuation is undemanding at 1.2x P/BV and 24% discount to our $8.48 RNAV. Target price of $7.20. MAINTAIN BUY."
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