PETALING JAYA: The 20 sen increase in the prices of British American Tobacco (M) Bhd
’s (BAT) cigarettes will have a marginal impact on the tobacco company’s earnings, according to analysts.
“We believe that BAT’s volume will be affected by the hike albeit marginally, as smokers will opt for a cheaper source of cigarettes. Tracking back its historical trend since 2006, volume declined 0.7% for every 1% hike in price,” said Hong Leong Investment Bank research head Low Yee Huap in a report.
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