May 17, 2010

JTINTER - Inter-Pacific Research reiterates outperform call on JTI

Stock Name: JTINTER
Company Name: JT INTERNATIONAL BHD
Research House: INTER PACIFIC

KUALA LUMPUR: Inter-Pacific Research has reiterated its outperform recommendation on JT INTERNATIONAL BHD [] at RM5.39 with target price RM6.20 based on its discounted cash flow valuation with weighted average cost of capital of 8.5%.

"We continue to remain positive on JTI led by its positive growing market share and continuous investment effort in its global flagship brands ie Winston and Mild 7 as their key drivers to their earnings growth," it said.

In 1QFY10, BAT posted a negative growth market share of 5.9% year-on-year, while Philip Morris experienced a flat growth in its market share, it said.

"But JTI market share stayed in the positive growth, up 4.9% year-on-year, underpinned by their two ever popular key brands ie Winston and Mild 7 chalking up a 1.5 percentage point and 0.4 percentage point rise in market share to 13.5% year-on-year and 4.1% year-on-year in 1QFY10.

"Continued improved performance was led by JTI's focus in the Value For Money (VFM) segment, which benefited as consumers down traded from premium brands and higher excise-led price increase, thus negating the lost of traction from their other brands," it said.

No comments:

Post a Comment