not vested
Carlsberg Brewery Malaysia(CAB MK)
Share Price: MYR38.94
Target Price: MYR27.70
Recommendation: Sell
D/G to SELL on demanding valuations
CAB’s 4Q19 core net profit was in line with our/consensus estimates.
Industry volume growth should slow given ongoing weak consumer sentiment and softer demand resulting from the COVID-19 outbreak.
At 36x FY20 PER, CAB currently trades at overvalued valuations of c.+4SD to its LT PER mean of 18x with a dividend yield of c.3%.
We D/G the stock to SELL with an unchanged DCF-TP of MYR27.70 (WACC: 8%, LT growth: 2.5%).
Source: Kim Eng
https://factsetpdf.maybank-ke.com/PDF/1 ... 3f3c5f.pdf