KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Despite beer sales in Malaysia not fully recovering to pre-COVID-19 levels, analysts remain optimistic about Carlsberg Brewery Malaysia Bhd's (KL) growth prospects, attributing this to the company's strategic focus on premium products.
Key Highlights:
Volume vs. Premiumization: Carlsberg’s beer sales volume remains below pre-pandemic levels, affected by soft consumer sentiment and inflationary pressures. However, the company’s focus on premium brands such as Brooklyn Pilsner, Connor’s, and 1664 is expected to drive growth. Last year, Carlsberg also signed agreements to license and distribute Sapporo beers in Malaysia and Singapore, replacing its previous agreement for Asahi products.
Analyst Sentiment: Despite the cautious response from investors following the recent results, which aligned with consensus estimates, analysts are largely positive. Seven out of nine research houses have a 'buy' call on the stock, with the consensus 12-month target price at RM23.32, indicating a potential return of up to 22.5% from its last trading price.
Seasonal Trends: Analysts expect seasonal softness in the April-June period to persist into the third quarter before picking up in the final months of the year. The upcoming Chinese New Year in early 2025 is likely to shift some pre-sales to the fourth quarter of 2024, potentially boosting year-end performance.
Market Performance: Carlsberg’s stock has remained relatively flat year-to-date, even as other consumer companies have seen significant gains. On Monday, shares in Carlsberg were largely unchanged, reflecting the market's cautious stance.
Growth Drivers: The premiumization of Carlsberg's product mix is seen as a key driver of growth. RHB Investment Bank, which has a 'buy' call on the stock, noted that the company’s strategy to focus on premium brands should continue to support its growth trajectory.
Tourism and Economic Factors: Hong Leong Investment Bank highlighted the positive impact of foreign tourist influxes to Malaysia and Singapore, alongside gradual improvements in Malaysia’s labor conditions and income prospects, as factors that could drive beer sales this year.
Outlook: While Carlsberg Malaysia continues to face challenges in recovering beer sales volume to pre-pandemic levels, its focus on premium products and strategic brand partnerships are expected to drive growth. Analysts are generally optimistic, with the stock poised for potential gains, especially with the expected seasonal uptick towards the year-end and into 2025.
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