Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

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FNH (FNH MK): Milking ASEAN Markets for Growth

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Equity Bottom-Up

Fraser & Neave Holdings / Equity Bottom-Up

<ul><li>Good price momentum and low volatility in sales relative to its sector</li><li>Dairy segment in Malaysia should improve in 2018 aided by new capex investment of US$6.5m to resolve production bottlenecks</li><li>FNH should see continued expansion in margins from reduced input costs in 2018 based on downtrend in sugar price due to oversupply</li><li>Trades slightly above ASEAN Consumer Staples at 18CE* 27.9x PE, but offers better EPS growth and has a solid balance sheet</li><li>Risks: Higher than expected operating costs and unfavorable changes in FX rates</li></ul><p><em>* Consensus Estimates</em></p>

Good price momentum and low volatility in sales relative to its sectorDairy segment in Malaysia should improve in 2018 aided by new capex investment of US$6.5m to resolve production bottlenecksFNH should see continued expansion in margins from reduced input costs in 2018 based on downtrend in sugar price due to oversupplyTrades slightly above ASEAN Consumer Staples at 18CE* 27.9x PE, but offers better EPS growth and has a solid balance sheetRisks: Higher than expected operating costs and unfavorable changes in FX rates* Consensus Estimates

FNH: Resolving Bottlenecks and Riding a Sweet Trend