Carlsberg to bounce back in fourth quarter

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.

PETALING JAYA: Carlsberg Brewery (M) Bhd is forecast to enjoy 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.

It also noted that the absence of a much-speculated increase in excise duty is seen as a plus. “We expect Q4FY21 to be much better – recall that during the last pre-pandemic quarter of Q4FY19, Carlsberg Malaysia achieved a core net profit of RM70mil,” said Kenanga.

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

It has maintained its “market perform” rating on the stock with an unchanged target price of RM23.10 based on FY22 price-earnings of 27.4 times.