ASSIGNMENT.docx - Cover Sheet \u2013 Corporate Finance(FNCE3000 Name Student ID Contribution Signature 1 Yu jia Cai 19554020 1 3 Yu jia Cai 2 Lim Jing kai

ASSIGNMENT.docx - Cover Sheet u2013 Corporate...

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Cover Sheet – Corporate Finance (FNCE3000) Name Student ID Contribution Signature 1 Yu jia Cai 19554020 1 3 Yu jia Cai 2 Lim Jing kai 19528478 1 3 Lim Jing kai 3 1 2 3 4 1 2 3 Comments: Contribution Key: (1) Did less than fair share, (2) Did fair share, (3) Did more than fair share. Recall that there is a 50% penalty if you did not contribute your fair share to completion of the project. Please use the comments section to note any comments you have on the way in which your team worked on the project, the structure of the project, and possible improvements for the project in future sessions. Qn. Max. Mark Assessed Mark Comments Shareholder Analysis 15 Risk-return Analysis 15 Cost of Capital Analysis 40 Financial Statement Analysis 30 Feedback:
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Introduction: Fraser and Neave, Limited (F&N) (SGX: F99) is a Singapore listed company started in Southeast Asia in 1883. From an aerated water business base, F&N sooner expending into beer, dairies, property development and management, and publishing & printing industry. Meanwhile, F&N ranks as one of the most satisfied companies in the region of beverage with strong competitors such as Asahi Breweries and Heineken. 1 Nowadays, F&N is conducting APCG (Asia Pacific Consumer Group) with professionalism and remarkable status in the Food & Beverage and Publishing & Printing industries. The aim of this report is to explore F&N’s financial strength with a deep look on 4 parts including shareholders, risk-return disclosures, cost of capital and financial statement analysis. This report relies on analyzing of F&N’s annual report, other sources are there to escalate the reliability of this investigation.
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1.0 Shareholder analysis. New shareholders whom are looking forward to invest, always look for the characteristics of the company to determine whether it is a risk loving or risk averse corporation. According to F&N’s annual report (2018) 2 , F&N tends to be aggressive in short-term and focusing on sustainability in a long-term basis. Chairman of F&N states that the group profit before interest and taxation has been surged 26% year-over-year, with interim dividend of 1.5 cent per share and final payment of 3.0 cent per share was recommended by director and its likely to be approved. Therefore, risk averse investors are more likely to invest in F&N, since long- term investors can be benefit by the policy of maintaining a sustainable dividend year-over- year. 1.1 Chairman’s message: Chairman of F&N, Mr Charoen Sirivadhanabhakdi, summarized the whole year performance at the end of financial year 2018. He states that group revenue grows by 2 per cent while earnings surged by 26 per cent, which largely led by dairies industry. Further more, a great marketing impact was performed by F&N through out the strategy of focusing on meeting consumer’s preferences, and keep 100PLUS the best-selling isotonic beverage brand in Singapore and Malaysia. Directors recommend for shareholder’s approval of a total 4.5 cent per share of dividend towards to the end of the year. As such F&N trends to gather long-term investors in this case.
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