KUALA LUMPUR (May 17): Fraser & Neave Holdings Bhd (F&N) emerged as the top loser today as rising commodity prices are seen to potentially affect its margins.
At noon break, F&N slipped RM1.02 or 3.54% to RM27.78, with 161,800 shares traded.
In a note dated May 6, CGS-CIMB said F&N remains cautious on the recent uptrend in commodity prices, which are expected to rise further going forward.
It said F&N is not discounting the possibility of raising selling prices of selected products to pass on the higher commodity prices.
“Nevertheless, we believe that any price increase will likely be limited to a single-digit quantum, as F&N would need to keep its products affordable for the mass market,” it said.
CGS-CIMB retained a “hold” call on F&N with a target price of RM31.60.
UOB KayHian research noted in a May 5 report that going forward, it expects F&N’s margins to be under pressure as commodity prices remain elevated.
It maintained its “hold” call for the stock and raised its target price to RM32 from RM31.80.
Featured Videos
