Skip to main content

Featured Post

Malaysia Corporate Round-Up: Energy Transition, Fundraising and IPO Momentum Drive Market Focus

Malaysia’s corporate landscape saw a mix of  fundraising activities, renewable energy expansion, IPO enthusiasm and balance sheet restructuring  dominate headlines, reflecting continued investor appetite for growth and defensive sectors despite broader market caution. Tenaga Advances Renewable Energy Push KL: TENAGA  strengthened its renewable energy ambitions after its subsidiary issued  RM1.05 billion in Asean Green SRI Sukuk  to finance a  500MW solar photovoltaic project in Kedah . The issuance highlights increasing institutional support for  green financing  and reinforces Tenaga’s long-term transition towards cleaner energy infrastructure. Investors may view the move positively as ESG-linked investments continue gaining traction across regional markets. Mr DIY Expands Funding Flexibility KL: MRDIY  raised  RM540 million via its maiden bond issuance , with proceeds earmarked for refinancing, working capital and expansion plans. The ...
Post a Comment

Brokers Report: Nestlé - KitKat to ignite growth

Retain HOLD call with a higher target price (TP) of RM85.73



Highlights

  • We attended Nestle’s 1Q17 briefing and came away feeling neutral on the company’s prospects going forward.
  • Nestle anticipates half of revenue growth in FY17 will be driven by new product launches, in particular, the launch of new varieties of KitKat chocolates.
  • We share management’s optimism on its new KitKat products, given: (1) its lion share in Malaysia’s chocolate product market which market share has grown from 14.4% in 2013 to 16.8% in 2016 (and overtook Cadbury as Malaysia’s most popular chocolate); (2) Majority of Malaysian consumers (two-third, according to a Nielsen report) prefer new and innovative products from brands that are familiar to them.
  • Additionally, we believe that the launch of the Kit Kat confectionary store in Mid Valley in late-2016 (where consumers can customize KitKat chocolate bars with up to 10,000 combinations) will serve as its marketing base (apart from allowing Nestle to sell premium KitKat products at higher margins). The buzz generated by the store and custom made KitKats via social media posts are expected to have an influential effect with 40% of Malaysian consumers citing social media posts as a source of new products. (Nielsen)
  • Product launches in 1QFY17: MET KOOL Panda, Nescafe GOLD Creamy Latte and Dark Latte, MAGGI Hot Mealz, MAGGI Roasted Sesame Chicken Noodles and KIT KAT Mini.
  • Prospects: We believe the group will carry out its Fuel, Innovate, Transform (FIT) strategy by continuing to innovate its product brands, and enhance efficiencies in its factories and supply chain processes. In doing so, Nestle aims to mitigate higher input costs going forward, particularly from milk powder and sugar.

Risks

  • Prolonged depression in consumer sentiments; strong competition especially in the instant coffee segment; potential failure in quality control.

Forecasts

  • Maintained, as our forecasts have already reflected the contribution of new products.

Rating

HOLD ↔
  • We believe Nestle warrants a HOLD call as it is fully valued at the current price despite organic growth prospects going forward. Investors should have Nestle in their portfolio on the back of its defensive nature and as a proxy to Malaysia’s recovery in consumption growth.

Valuation

  • Maintain our HOLD call with a higher TP of RM85.73 (from RM81.20) based on DDM (WACC: 7.8%; TG: 3%) after rolling over our DDM valuation forward.


Source: Hong Leong Investment Bank Research - 27 April 2017
Labels:

Comments

Post a Comment

Popular posts from this blog

特朗普考虑保罗·阿特金斯接任SEC主席，或推动加密货币监管转型

据彭博社报道，美国候任总统唐纳德·特朗普正在考虑由 保罗·阿特金斯 （Paul Atkins）接替即将卸任的证券交易委员会（SEC）主席 加里·根斯勒 （Gary Gensler）。阿特金斯以其支持数字资产的立场闻名，这一任命可能为SEC的加密货币监管政策带来重大转变。 事件概况 阿特金斯的背景 ： 阿特金斯曾在乔治·W·布什政府期间担任SEC专员。他一直推动制定明确且平衡的加密货币法规，力求为金融科技创新提供支持。 行业经验 ： 离开SEC后，阿特金斯领导了 Patomak Global Partners ，一家为主要金融公司提供咨询的机构。他主张简化监管流程以鼓励创新，同时确保市场完整性。 其他候选人 ： 马克·乌耶达 （Mark Uyeda）：现任SEC专员 希斯·塔伯特 （Heath Tarbert）：前商品期货交易委员会（CFTC）主席 罗伯特·斯特宾斯 （Robert Stebbins）：Willkie Farr & Gallagher LLP合伙人 特朗普的亲加密货币立场 特朗普承诺终结根斯勒领导下的SEC“反加密货币运动”。根斯勒的任期因FTX崩盘等丑闻后的强力执法而备受争议，被批评为给行业带来了不确定性。 阿特金斯的潜在任命与特朗普的目标一致，即在保障市场完整性的同时，通过更加友好的监管政策推动数字资产的发展。 接下来会发生什么？ SEC主席的任命预计将在未来几天内敲定。如果阿特金斯接任，这将表明SEC将采取更注重创新的监管方式，为加密货币行业带来更大的确定性和发展空间。
Post a Comment
Read more

Capital A 股价下跌，因外汇驱动的第三季度业绩低于预期

Capital A Bhd 在周五早盘交易中股价下跌7%，至1.01令吉，市值降至46亿令吉。这是由于其2024财年第三季度业绩未达到大多数分析师预期，尽管受益于外汇收益提振。 2024财年第三季度亮点： 核心税后及少数股东权益后亏损 (Latmi)：  1.434亿令吉，令2024财年前9个月的税后亏损达到1.195亿令吉。 业绩未达  香港联昌投资银行（HLIB）预计的7.549亿令吉的税后净利（Patmi），但与市场普遍预测的4.59亿令吉税后净利一致。 剔除例外项目 (EIs)：  共计12亿令吉，主要由于15亿令吉的外汇收益，但被递延税务损失部分抵销。 环比表现： 核心Latmi从上一季度的5,760万令吉恶化至1.434亿令吉，主要受以下因素影响： 季节性收益率疲弱； 成本增加； ADE MRO（维修、保养及翻修）业务因6个新机库的启动成本造成亏损。 未来展望： 预计2024财年第四季度表现将有所改善，得益于： 更高的机队容量； 季节性需求和收益率的改善； 喷气燃料价格下降及美元贬值； 来自新ADE机库的运营贡献。 待决事项： 航空业务出售：  正等待法院批准出售给亚航长途（AirAsia X Bhd, KL:AAX），预计在2025财年第一季度完成。 PN17状态：  出售后仍维持，预计在2025财年上半年完成相关解决方案。 联昌投资银行（HLIB）建议： 维持“买入”评级，目标价为1.68令吉，估值基于航空业务为68亿令吉，非航空业务为21.5亿令吉。 尽管短期面临挑战，Capital A 的长期增长前景依然受到更强的季节性表现和战略举措的支持。
Post a Comment
Read more

Market Daily Report: Bursa Malaysia Ends At Two-month High On Positive Sentiment

KUALA LUMPUR, Dec 12 (Bernama) -- Bursa Malaysia’s key index closed higher today on bargain hunting, in line with positive investor sentiment across regional markets, consolidating at its highest level in more than two months — a level last seen on Oct 2, 2025. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 12.42 points, or 0.76 per cent, to 1,637.81, compared with Thursday’s close of 1,625.39. The benchmark index opened 2.83 points lower at 1,622.56, thereafter edged down to an early low of 1,622.03, before staging an uptrend to an intraday high of 1,640.36 in late trading. Market breadth was positive, with gainers trouncing decliners at 743 versus 387. Another 530 counters were unchanged, 1,108 untraded, and 16 suspended. Turnover increased to 3.09 billion units worth RM2.46 billion from 2.99 billion units worth RM2.35 billion on Thursday. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the FBM KLCI ended higher on continued...
Post a Comment
Read more