Heineken Malaysia

Heineken Malaysia

Postby winston » Fri Mar 01, 2019 5:51 pm

not vested

While Heineken Malaysia ended 9M18 earnings only making up 65 percent of consensus full year estimates, the recent 4Q18 results dispelled concerns of an earnings shortfall and cap off the year with healthy volume growth.

Because of concerns on its earnings, the stock traded down below -2SD from its mean price-to-earnings multiple.

With visible organic growth and low regulatory and policy risks, UOBKH believes that Heineken Malaysia should re-rate after releasing its quarterly results.

As it turned out, the stock began recovery post-FY18 earnings release.

BUY, TP RM24.50; Current share price RM23.12

Source: Shares Investments
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118538
Joined: Wed May 07, 2008 9:28 am

Re: Heineken Malaysia

Postby winston » Mon Feb 24, 2020 10:47 am

not vested

4Q19 results: Below expectations
D/G to SELL with lower DCF-TP of MYR25.70


4Q19 core net profit fell below expectations on higher-than-expected A&P expenses.

We believe that near term sales volume demand will slow given HEIM’s recent price hike (effective 1 Mar) coupled with consumer concerns on the COVID-19 outbreak.

Our FY20-FY21 earnings estimates are revised by -6% p.a. and we introduce our FY22 earnings estimates.

At 25x FY20 PER, we believe that HEIM is trading at demanding valuations, +2.5SD above its LT mean PER of 19x. Hence, we D/G HEIM to SELL with a lower DCF-TP of MYR25.70 (WACC: 7%; LT growth: 2.5%).

We see more attractive returns and dividend yields for consumer sector exposure in
BAT (ROTH MK; BUY; TP: MYR19.90).

Source: Kim Eng

https://factsetpdf.maybank-ke.com/PDF/1 ... 58b089.pdf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118538
Joined: Wed May 07, 2008 9:28 am


Return to E to K

Who is online

Users browsing this forum: No registered users and 8 guests