PETALING JAYA: Heineken Malaysia Bhd
’s outlook for the financial year ending Dec 31, 2026 (FY26) is expected to be brimming, supported by the surge in consumer spending from Visit Malaysia 2026 (VM2026) as well as the lunar new year festivities in the first quarter ending March 31, 2026 (1Q26).
The company announced its 4Q25 results on Wednesday, which largely met market expectations, although for FY25 net profit was 2% lower and revenue was flat.
Analysts covering the stock maintained their “buy” calls and also raised their target price (TP).
The company also proposed a final dividend of RM1.12 per share, bringing total dividend to RM1.52 in FY25.
RHB Research raised the TP to RM27.60 from RM26.50.
“We take comfort from the solid performance, notwithstanding the soft consumer sentiment in FY25, underpinned by resilient demand for beer and Heineken’s continuous efficiency gains,” the research house said.
Analysts noted that while price increases in August and September as well as the excise duty hike beginning last November could weigh on consumer sentiment, solid economic growth, a stronger ringgit and stable government policies would help boost consumption.
Maybank Investment Bank (Maybank IB) Research raised its TP to RM31.50 from RM30, and lifted FY26 and FY27 earnings by 5% and 6% respectively.
“Our model has imputed for industry volume growth of 3% per annum and 100% dividend payout ratio for FY26 to FY28.
“With a longer sales period to Chinese New Year, we anticipate stronger festive-led sales volume in 1Q26 before normalising in 2Q26 and 3Q26 in absence of festivities,” it said.
HLIB Research said the company was well placed to capture incremental demand from VM2026. It has raised its TP to RM28.08 from RM27.14.
“Moreover, the stronger ringgit should translate into steady margins, given raw material costs are largely dollar-denominated while revenues remain ringgit-based,” it added.
TA Research, which has raised the TP to RM25.80 from RM24, said the company would continue to prioritise operational efficiency, alongside targeted marketing and promotional initiatives, to mitigate the impact of higher excise duties and reinforce overall performance in FY26.
For 4Q25, Heineken’s revenue rose 1.9% year-on-year to RM839.05mil from RM823.14mil, mainly driven by the excise duty increase in November 2025, further supported by effective revenue management, distribution efforts and strategic commercial initiatives.
Net profit for the quarter increased marginally by 0.3% to RM141.25mil from RM140.85mil a year earlier.
