British American Tobacco

British American Tobacco

Postby winston » Thu Oct 16, 2014 9:01 pm

not vested

BAT Q3 earnings up 10% to RM241mil, declares 78 sen dividend

KUALA LUMPUR: British American Tobacco Bhd’s earnings in the third quarter ended Sept 30, 2014 rose 9.9% to RM241.1mil from RM219.3mil in the same period a year earlier, as revenue improved 3.3% to RM1.209bil from RM1.171bil.

The company declared a tax-exempt dividend of 78 sen per share, 10 sen more than previously, amounting to a payout of RM222.7mil, payable on Nov 3, 2014.

BAT earned 84 sen per share in the quarter, compared to 76.8 sen in the corresponding quarter last year.

In the three quarters so far of the current financial year, earnings came to RM714.6mil – up 12.6% from the RM634.3mil previously. This was on revenue of RM3.59bil – an improvement of 4.9% from the RM3.423bil previously.

BAT said manufacturing volume for year-to-date to September saw a fall of 12.6% from a year ago. Nonetheless, revenue in the period improved due to the cumulative effects of the price increase in June 2013 and the September 2013 excise-led price increase.

As for earnings, which climbed 12.6%, it said this was due to the price increases mentioned earlier, as well as the absence of non-recurring leaf restructuring expenses registered in 2013, plus the implementation of productivity savings.

On its prospects in the near term, the company said it remained concerned about the impact of the illegal cigarette trade, even though the Royal Malaysian Customs had taken actions that had proven effective. The share of illegal cigarettes went down to 35.8% in 2014 from 38.9% in Q4 2013.

“The performance of the company in 2014 will continue to be dependent on the effectiveness and sustainability of enforcement activities,” BAT said.

Source: The Star
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Re: BAT

Postby winston » Sun Oct 19, 2014 6:13 am

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CIMB Research maintains Reduce on BAT
Friday, 17 October 2014

KUALA LUMPUR: CIMB Equities Research is maintaining its Reduce call on British American Tobacco (M) Bhd (BAT) with a target price of RM58.10, which is 12.9% below the last traded price of RM66.72.

It said on Friday BAT’s 9MFY14 net profit came in at 78.3% of its full-year forecast and 79% of consensus.

“We deem the results to be in line as we expect its net profit growth to normalise in 4Q given that BAT has raised its selling prices at end-September last year,” it said.

CIMB Research said despite continual local and export sales volume decline, 9M revenue and net profit increased, thanks to higher selling prices.

The research house maintain its EPS forecasts and discounted cashflow based target price.

“We also keep our Reduce call as we think that legal cigarette volume will continue to be under pressure. More importantly, BAT’s leadership position in dictating future cigarette price hikes could be eroded following the reluctance of its competitors to follow suit when it increased its selling prices recently,” it said.

CIMB Research said BAT’s second interim DPS of 78 sen, in line with its forecast.

Source: The Star
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Re: BAT

Postby winston » Thu Jun 09, 2016 9:29 am

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Potential dividends from land sales

British American Tobacco Malaysia is selling its land to LGB Properties (M) Sdn Bhd for RM218m.

It will decide on the usage of the proceeds by end-2016. Possible scenarios are:
i) special dividend,
ii) repayment of borrowings, and
iii) capital reduction.

Assuming a conservative 80% of the proceeds are used for special dividend, this could translate to RM0.62 per share.

Maintain Add with TP of RM51.00.

Source: CIMB

https://brokingrfs.cimb.com/WrLWuEjhKJO ... f_TQA2.pdf
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Re: British American Tobacco

Postby winston » Sun Apr 22, 2018 3:45 pm

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BAT Malaysia shares remains underpriced

We are dealing with almost 60 per cent of illegal cigarette trading in the market.

Last year, its market share increased by 1.4 percentage point to 54.6 per cent on strong demand for its flagship brands Dunhill and Peter Stuyversant.

Both brands recorded higher sales of 37.8 per cent and 7.5 per cent respectively, pushing the company's share in the premium segment from 59 per cent to 62 per cent.

Group revenue, however, dropped 20.1 per cent as a result of continued growth of the illegal trade here.

The company entered the Value for Money (VFM-lowest price in the market) segment with Rothmans last year, enabling it to achieve 30 per cent share of the segment.

Despite lower revenue, BAT Malaysia declared a 98 per cent dividend at 43 sen a share and stated its commitment to investing in Malaysia despite having to face challenges from the illegal market.


Source: NST

https://www.nst.com.my/business/2018/04 ... nderpriced
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Re: British American Tobacco

Postby winston » Sun Apr 22, 2018 3:45 pm

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BAT Malaysia shares remains underpriced

We are dealing with almost 60 per cent of illegal cigarette trading in the market.

Last year, its market share increased by 1.4 percentage point to 54.6 per cent on strong demand for its flagship brands Dunhill and Peter Stuyversant.

Both brands recorded higher sales of 37.8 per cent and 7.5 per cent respectively, pushing the company's share in the premium segment from 59 per cent to 62 per cent.

Group revenue, however, dropped 20.1 per cent as a result of continued growth of the illegal trade here.

The company entered the Value for Money (VFM-lowest price in the market) segment with Rothmans last year, enabling it to achieve 30 per cent share of the segment.

Despite lower revenue, BAT Malaysia declared a 98 per cent dividend at 43 sen a share and stated its commitment to investing in Malaysia despite having to face challenges from the illegal market.


Source: NST

https://www.nst.com.my/business/2018/04 ... nderpriced
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Re: British American Tobacco

Postby winston » Wed Jul 31, 2019 10:17 am

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July 26, 2019

SELL

Smoke out of Chimney? Probably Not Yet

1HFY19 revenue declined 4.2% YoY to RM1.3bn (meanwhile, excluding SST impact, adjusted revenue fell by 9.1% YoY to RM1.2bn) owing to reduction in BAT’s market volume to 1.7bn sticks (-10.1% YoY).

Adjusted EBIT declined by a larger quantum, 16.0% YoY to RM229.1mn due to upfront investment into THP and phasing of marketing spending.


We understand that BAT has obtained approval from MoH and is set to launch its THP products (the device – glo and the stick –neo) in Q4FY19.

Glo has a slick modern appearance with intuitive usability (one device with one button) that can be used alongside neo, which we expect could be launched with range of flavours to suit consumers’ preference.

Pricing of glo and neo has not been revealed, however we believe it should come in neck-to-neck to iQoS and HEETS. While it is an exciting alternative to consumers, we think THP may not necessarily be earnings accretive in its infancy stage.


Source: TA Securities
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Re: British American Tobacco

Postby winston » Wed Jul 31, 2019 10:30 am

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2Q19: Another Confirmed Delay To Lisboa Palace

The key focus of the interim briefing is management confirming earlier media reports that the Lisboa Palace opening will be delayed indefinitely until 2020.

When asked why, management’s reference to 2017’s fire and typhoon disasters sounded unconvincing.

The fact that 2Q19 EBITDA was in line with consensus estimates came as an afterthought.

Maintain HOLD on SJM. Target price: HK$9.00. Entry: HK$8.00.

Source: UOBKH

https://research.uobkayhian.com/content ... ba21962f0b
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Re: British American Tobacco

Postby winston » Wed Aug 07, 2019 8:30 am

Illicit cigarettes, vape bleed M’sia

By By ROYCE TAN

KUALA LUMPUR: Malaysia has the unenviable honour of sitting on the throne of the highest level of illegal cigarettes in the world.

This bleeds the country of at least RM5bil annually in uncollected taxes from the illicit cigarette trade.

With the unregulated vaping products factored in, the government stands to lose RM6bil in total every year.

Illegal cigarettes and unregulated vaping products have since ballooned to 70% of the total consumption in the country.

Illegal cigarettes make up 60% of the consumption, which translates to an estimated volume of 2.8 billion sticks.

JTI Malaysia also estimated that vaping has more than doubled between 2018 and 2019 and now makes up around 10% of smokers in the country, with the uncollected tax from this business said to be around RM1bil.


Source: The Star

https://www.thestar.com.my/business/bus ... 5gBtRfI.99
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Re: British American Tobacco

Postby winston » Wed Aug 07, 2019 10:14 am

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Vapes: more potent than ever

Tobacco trader JT International Bhd estimated that c.10% of Malaysian smokers are now using vapes. This represents a c.900% spike from 2015.

The government plans to regulate vapes. But we see risks of a black market mushrooming in event the imposed tax makes vapes unaffordable.

Unless BAT's product retail prices become affordable to the majority of Malaysians, we see little catalysts to its share price. Maintain Reduce.

Source: CIMB

https://brokingrfs.cimb.com/GgRoY6r9bN4 ... 7aEEg2.pdf
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Re: British American Tobacco

Postby winston » Wed Sep 18, 2019 9:27 am

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British American Tobacco (ROTH MK)
Finding A Bottom For Now


We foresee constant threats arising from substitute tobacco products, illicits and downtrading weighing on BAT over the long term.

These structural flaws could take years to unfold, not to mention the ever-present regulatory hurdles.

This justifies current depressed valuations as BAT trades below -2SD of its 5-year PE mean.

We take the opportunity to upgrade to HOLD but cut our target price to RM22.00 from RM25.00.
Entry price: RM19.00.

Source: UOBKH

https://research.uobkayhian.com/content ... 4fffc8685c
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