Nestle (Malaysia)
Posted: Thu Apr 30, 2026 9:27 amnot vested
4707 Nestle (Malaysia) (BUY)
Strategic resilience
Nestle delivered a solid 1Q26 with 6.3% YoY sales growth, supported by a 7.4% domestic volume rise from the CNY and Raya festivities.
Despite Middle East logistical hurdles, management maintained its “no price hike” stance for 2Q-3Q26, prioritising operational efficiency and securing alternative supply routes.
Nestle is transitioning to a lower capex cycle, targeting maintenance, digitalisation, and automation to drive operational efficiency.
Maintain BUY with an unchanged TP of RM135 based on DDM (WACC: 6.2%, TG: 3.5%).
Source: HLIB
4707 Nestle (Malaysia) (BUY)
Strategic resilience
Nestle delivered a solid 1Q26 with 6.3% YoY sales growth, supported by a 7.4% domestic volume rise from the CNY and Raya festivities.
Despite Middle East logistical hurdles, management maintained its “no price hike” stance for 2Q-3Q26, prioritising operational efficiency and securing alternative supply routes.
Nestle is transitioning to a lower capex cycle, targeting maintenance, digitalisation, and automation to drive operational efficiency.
Maintain BUY with an unchanged TP of RM135 based on DDM (WACC: 6.2%, TG: 3.5%).
Source: HLIB