Carlsberg Malaysia to bounce back in 4Q


KUALA LUMPUR: Carlsberg Brewery Malaysia Bhd is forecast for a strong finish to the year as its earnings undergo a sharp recovery in the final quarter amid the reopening of the economy.

Kenanga Research said in a note that the brewer is poised to gain in the longer-term due to the further easing of lockdown measures in both Singapore and Malaysia.

"Planned reopening of Malaysia’s borders to international tourists coupled with the upliftment of interstate travel could be a major driver for higher sales," it said.

It noted also the absence of a much-speculated increase in excise duty, which is seen as a plus.

"We expect 4QFY21 to be much better – recall that during the last pre-pandemic quarter of 4QFY19, CAB achieved a CNP of RM70m," said Kenanga.

Carlsberg Malaysia's core net profit for the ninth months to Sept 30, 2021, came to just 62% of Kenanga's and consensus full-year estimates.

However, the research firm said this was not surprising given the disruptions to its local operations from the brewery suspension and disruptions in distribution and dine-in restrictions.

Post-results, it maintained its FY21 core net profit forecast by reduce FY22 core net profit by 7.5%, reflecting the impact arising from the Prosperity Tax.

It maintained "market perform" with an unchanged target price of RM23.10 on FY22 price-earnings of 27.4 times.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights
   

Next In Business News

CapitaLand to reduce reliance on retail, ventures into industrial real estate, logistics, data centres
Report: Affin Bank to dispose of asset management arm for over RM2bil
BHIC to cooperate with MACC in combat vessels probe
Uzma unit bags EnQuest job worth RM30mil
Khairussaleh Ramli to be appointed Maybank president, CEO
Bursa Malaysia rebounds on bargain hunting at final hour
Azman Hashim to retire from AMMB board
Azmin: Genting Hong Kong bankruptcy has no impact on Malaysian economy
China property shares slump as planned U.S. rate hike adds to woes
U.S. yields rise, Asian shares and European futures tumble as Powell warns on inflation

Others Also Read


Vouchers