Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
KUALA LUMPUR: British American Tobacco (M) Bhd's (BAT)share price rose by RM1.18, or 2.08 per cent, to RM57.90 as at 11.55 am today after announcing a bullish second-quarter performance.
HwangDBS Vickers Research Sdn Bhd said the cigarette manufacturer's second-quarter net income grew by 20 per cent year-on-year to RM220.8 million, mainly attributed to higher percentage of sales mix from contract manufacturing which offered better margins.
BAT has declared a second interim dividend of 65 sen for the quarter, it said.
"We raise net profit forecast by eight per cent to RM776.2 million for financial year 2012 and 10 per cent to RM826.7 million for financial year 2013 on higher industry volume at 13.2 billion sticks from 13.2 billion previously and better margins from contract manufacturing," it said in a research note
today.
HwangDBS Vickers has maintained a 'hold' on the stock at RM56.72.
Meanwhile, Alliance Research Sdn Bhd said BAT's strong performance was also contributed by lower operating costs due to timing difference of marketing expenditure, lower distribution costs as well as the absence of merchandising depreciation.
"Going forward, the management expects illicit trade to stabilise at current level if the federal government maintains its excise duty for cigarettes in the coming budget," it said in a note.
Alliance Research has raised the target price of the stock to RM49.60 and maintained its 'sell' call. -- BERNAMA
Company Name: BRITISH AMERICAN TOBACCO (M)
| Research House: ALLIANCE | Price Call: SELL | Target Price: 49.60 |
KUALA LUMPUR: British American Tobacco (M) Bhd's (BAT)share price rose by RM1.18, or 2.08 per cent, to RM57.90 as at 11.55 am today after announcing a bullish second-quarter performance.
HwangDBS Vickers Research Sdn Bhd said the cigarette manufacturer's second-quarter net income grew by 20 per cent year-on-year to RM220.8 million, mainly attributed to higher percentage of sales mix from contract manufacturing which offered better margins.
BAT has declared a second interim dividend of 65 sen for the quarter, it said.
"We raise net profit forecast by eight per cent to RM776.2 million for financial year 2012 and 10 per cent to RM826.7 million for financial year 2013 on higher industry volume at 13.2 billion sticks from 13.2 billion previously and better margins from contract manufacturing," it said in a research note
today.
HwangDBS Vickers has maintained a 'hold' on the stock at RM56.72.
Meanwhile, Alliance Research Sdn Bhd said BAT's strong performance was also contributed by lower operating costs due to timing difference of marketing expenditure, lower distribution costs as well as the absence of merchandising depreciation.
"Going forward, the management expects illicit trade to stabilise at current level if the federal government maintains its excise duty for cigarettes in the coming budget," it said in a note.
Alliance Research has raised the target price of the stock to RM49.60 and maintained its 'sell' call. -- BERNAMA
Well I am quite satisfied with that opinion given in your site. I think it must be implacable in real life.
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