Nestle (Malaysia)

[winston]

not 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