Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
Company Name: BRITISH AMERICAN TOBACCO (M)
| Research House: MIDF | Price Call: HOLD | Target Price: 72.82 |
Showing posts with label BAT. Show all posts
Showing posts with label BAT. Show all posts
April 30, 2015
April 29, 2015
Positive Start to the Year
Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
Company Name: BRITISH AMERICAN TOBACCO (M)
| Research House: TA | Price Call: HOLD | Target Price: 73.15 |
April 2, 2015
Raises Selling Prices Due to GST
Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
Company Name: BRITISH AMERICAN TOBACCO (M)
| Research House: TA | Price Call: SELL | Target Price: 73.15 |
November 10, 2014
BAT - Mild impact on price hike expected
Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
Company Name: BRITISH AMERICAN TOBACCO (M)
| Research House: MIDF | Price Call: HOLD | Target Price: 63.49 |
September 9, 2014
BAT - Could There Be Another Hike?
Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
Company Name: BRITISH AMERICAN TOBACCO (M)
| Research House: TA | Price Call: SELL | Target Price: 68.00 |
July 23, 2014
BAT - “Ops Outlet” – Positive Impact on TIV
Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
Company Name: BRITISH AMERICAN TOBACCO (M)
| Research House: TA | Price Call: SELL | Target Price: 63.09 |
April 25, 2014
BAT - Higher Selling Price Aggravated Volume Contraction
Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
Company Name: BRITISH AMERICAN TOBACCO (M)
| Research House: TA | Price Call: SELL | Target Price: 57.03 |
February 20, 2014
BAT - Contracting Domestic Volume
Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
Company Name: BRITISH AMERICAN TOBACCO (M)
| Research House: TA | Price Call: SELL | Target Price: 57.03 |
October 18, 2013
BAT - Price increase to impact sales volume
Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
Company Name: BRITISH AMERICAN TOBACCO (M)
| Research House: MIDF | Price Call: HOLD | Target Price: 60.00 |
BAT - Contract Manufacturing and Higher Selling Prices Supported 9MFY13 Earnings
Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
Company Name: BRITISH AMERICAN TOBACCO (M)
| Research House: TA | Price Call: SELL | Target Price: 61.15 |
April 24, 2013
Market leadership position strengthened
Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
Company Name: BRITISH AMERICAN TOBACCO (M)
| Research House: MIDF | Price Call: HOLD | Target Price: 58.67 |
October 22, 2012
Tobacco industry cut to 'underweight'
Stock Name: JTINTER
Company Name: JT INTERNATIONAL BHD
Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
Affin Investment Research cut its rating on Malaysia's tobacco industry to "underweight" from "neutral" after the government unexpectedly hiked the price of cigarettes by 20 sen per pack, effective from Oct. 22.
"The tax hike has come as a negative surprise as we had earlier expected the tobacco tax hike would only resume in Budget 2014, post the 13th General Election," Affin said in a note on Monday.
"A hike would definitely bring a negative impact on total industry volume growth as a higher pricing structure invariably leads to a surge in illicit trades, and thus exerts downward pressure on industry volumes," Affin added.
The research house lowered ratings on JT International Bhd to "reduce" from "add" and cut its target price to RM6.95 per share from RM8.00.
Affin also downgraded its target price on British American Tobacco Malaysia Bhd to RM56.00 per share from RM56.13. -- Reuters
Company Name: JT INTERNATIONAL BHD
| Research House: AFFIN | Price Call: SELL | Target Price: 6.95 |
Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
| Research House: AFFIN | Price Call: SELL | Target Price: 56.00 |
Affin Investment Research cut its rating on Malaysia's tobacco industry to "underweight" from "neutral" after the government unexpectedly hiked the price of cigarettes by 20 sen per pack, effective from Oct. 22.
"The tax hike has come as a negative surprise as we had earlier expected the tobacco tax hike would only resume in Budget 2014, post the 13th General Election," Affin said in a note on Monday.
"A hike would definitely bring a negative impact on total industry volume growth as a higher pricing structure invariably leads to a surge in illicit trades, and thus exerts downward pressure on industry volumes," Affin added.
The research house lowered ratings on JT International Bhd to "reduce" from "add" and cut its target price to RM6.95 per share from RM8.00.
Affin also downgraded its target price on British American Tobacco Malaysia Bhd to RM56.00 per share from RM56.13. -- Reuters
September 26, 2012
Tobacco - No excise hike expected in Budget 2013
Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
Company Name: BRITISH AMERICAN TOBACCO (M)
| Research House: MIDF | Price Call: HOLD | Target Price: 56.52 |
July 20, 2012
Stronger Than Expected Profit on Better Margin
Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
Company Name: BRITISH AMERICAN TOBACCO (M)
| Research House: TA | Price Call: SELL | Target Price: 55.61 |
BAT up on bullish Q2 performance
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
April 4, 2012
HLIB Sector Update - Tobacco
Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
Stock Name: JTINTER
Company Name: JT INTERNATIONAL BHD
Source: HLIB Reserach - 4 April 2012
Company Name: BRITISH AMERICAN TOBACCO (M)
| Research House: HLG | Price Call: HOLD | Target Price: 49.50 |
Stock Name: JTINTER
Company Name: JT INTERNATIONAL BHD
| Research House: HLG | Price Call: HOLD | Target Price: 6.90 |
Tobacco (NEUTRAL; NEW)
To Smoke or Not To Smoke?
- The tobacco sector is expected to continue experiencing decline in TIValbeit marginally. TIV could decline further if government imposes excise duty(ED) hike. Currently, illicit cigarettes are sitting on considerably highmarket share level of 36.1%.
- Illicit cigarettes decline in 2010 and 2011 due to regulation tighteningand stronger enforcement, coupled with the absence of ED hike during Budget2012.
- The sector has an inelastic demand. Moreover, the increases in cigaretteprices are more than enough to offset the increase in ED. Coupled withcontinued enforcement; earnings are expected to be resilient and highlypredictable.
- The sector is also affected by seasonal factorswhereby 4Q traditionally record lower earnings from lowersales volume due to pre-stocking activities ahead of potential ED hike.
- The advantages of the sector are: (1) High dividend yield stocks; and(2) Countercyclical share price pattern.
- However, current share prices have fully reflected their respectivefundamentals. Hence, we initiate coverage on the sector with a NEUTRAL rating:
- (1) British AmericanTobacco, BAT (HOLD; TP: RM49.50)
- (2) JT International,JTI (HOLD; TP: RM6.90)
Source: HLIB Reserach - 4 April 2012
March 28, 2012
Consumer (Tobacco) - Neutral - 28 March 2012
Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
Company Name: BRITISH AMERICAN TOBACCO (M)
| Research House: KENANGA | Price Call: HOLD | Target Price: 52.80 |
We will be separating the tobacco sector from our generalconsumer sector strategy outlook from here onwards. At this juncture, we aremaintaining our NEUTRAL call on the industry. The tobacco industry has beenexperiencing a decline in legal cigarettes volume since 8 years ago in contrastwith the increasing illicit trades. In fact, the absence of any tax hikes inlast Oct has apparently slowed down the booming illicit trades. We however hopethat the government will continue to maintain the tax duties this year and alsocontinue to lend a hand to shape up the legal industry. On top of that, we alsosaw a significant decline of volume in sub-VFM for 2011. This could also be a positiveindication of consumers turning from illicit and sub-VFM to VFM or premium cigarettesas a result of the absence of tax hikes. Nonetheless, the challenges and obstaclesthat the tobacco industry faces remain high with the key challenges being thecontinued uncertainties of future excise duty hikes and the continuing highlevel of illicit trades. As a result, we remain NEUTRAL on the tobacco sector andis reiterating our MARKET PERFORM call on BAT with TP of RM52.80.
50/50 chance of anexcise duty hike this year, hence remains neutral. The absence of a hike inthe sin tax in Budget 2012 last year have given the market a positive surprise andwe believe the TIV would likely stabilise this year, provided there is noadditional hike throughout this year. Historically, the government has nevermissed to increase the tax at least once for the past 8 years and has increasedit out of the Federal Budget for several years since the first time in 2007.Thus, we believe that there is still a 50/50 chance of an additional tax hikethis year especially towards the second half of the year and probably after thegeneral election. We have computed the correlation between tax hikes and TIVand found that it has historically shown an inverse relationship that heldalmost to perfection. In other words, we believe the TIV will be negativelyimpacted if there is any further increase of the tax this year. That said, weremain neutral at this juncture on the back of the absence of any taxadjustment in the last Budget 2012, a diminishing sub-VFM volumes (-16% YoY)and a decrease in the illicit trades (-0.2ppt YoY).
Expect slightimprovement in 2012 TIV. The booming sales of illicit cigarettes have softenedin 4Q11 by -1.5ppt QoQ and -0.2ppt YoY. However, the quantum of decrease was notas ideal as the performance in 4Q10 (-4.2ppt QoQ and -1.2ppt YoY). Moreover,the current level is still on the high side as compared to 3 years ago, which in turn negatively impacts the government tax revenueand at the same time jeopardises the government health agenda to reduce smokingprevalence and also threatens the legal industry such as BAT, JT Internationaland Phillip Morris. In the past two years, the first wave (from Mar to Jun) ofthe illicit tobacco was the highest among the 3 waves. Assuming the trendremains, we hope that the first wave for 2012 would at least be maintained orlesser than the current level of 34.8% for 4Q11 and will continue to decline inthe following two waves. As such, the legal cigarettes would probably make arebound above 3.0b sticks or slightlyabove 3.5b sticks per quarter. For this year, 2012, we expect the TIV toimprove slightly to 13.4b sticks as compared to 13.3b sticks in 2011. Thebetter expectation is mainly supported again by the absence of any taxadjustment in the last Budget 2012 and also the diminishing sub-VFM and lowerillicit trades. We are also anticipating that the history will repeat itselfand that wave 3 would have a stronger volume than the rest mainly caused by thespeculation of an excise hike after a general election as well as before Budget2013.
Cloudy days ahead?The challenges and obstacles that thetobacco industry face remain with the key challenges being the continueduncertainties of future excise duty hikes and the continuing high level ofillicit trades. Thus, we remain NEUTRAL on the tobacco industry and reiterate our MARKET PERFORM call on BAT with a TP of RM52.80. Although we have not included JT International into ouruniverse yet, we believe BAT will catch the most limelight among its peers asits market share is light years ahead of the rest in both the premium and VFMsegments. In addition, it would potentially overtake the VFM market shareleadership this year while maintaining its strong market share in the premium segment.
Source: Kenanga
February 17, 2012
Numbers Spot-on
Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
Company Name: BRITISH AMERICAN TOBACCO (M)
| Research House: OSK | Price Call: HOLD | Target Price: 52.47 |
BAT: Maintain Hold - The comeback
Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
Fairly reflected. BAT outperformed the industry in 2011, after eight years of market share contraction. However, we think BAT's strong fundamentals are fairly reflected in its share price, with the stock trading at 19.2x 2012 PER, +1SD above mean. Maintain Hold at a marginally higher TP of RM50.40 (+6.1%) after reviewing our DCF parameters.
Maybank Research 17 Feb 2012
Click here for full report
Company Name: BRITISH AMERICAN TOBACCO (M)
| Research House: MAYBANK | Price Call: HOLD | Target Price: 50.40 |
Fairly reflected. BAT outperformed the industry in 2011, after eight years of market share contraction. However, we think BAT's strong fundamentals are fairly reflected in its share price, with the stock trading at 19.2x 2012 PER, +1SD above mean. Maintain Hold at a marginally higher TP of RM50.40 (+6.1%) after reviewing our DCF parameters.
Maybank Research 17 Feb 2012
Click here for full report
BAT - Flat earnings, but good dividends
Stock Name: BAT
Company Name: BRITISH AMERICAN TOBACCO (M)
British American Tobacco; Hold; RM52.30
Price Target: RM46.60; ROTH MK
4Q11 earnings were within expectation; declares 4th interim dividend of 66sen per share. Challenging FY12 outlook due to high illicit trade and shrinking market size. Maintain Hold for yields.
Source: HwangDBS Research 17 Feb 2012
Company Name: BRITISH AMERICAN TOBACCO (M)
| Research House: HWANGDBS | Price Call: HOLD | Target Price: 46.60 |
British American Tobacco; Hold; RM52.30
Price Target: RM46.60; ROTH MK
4Q11 earnings were within expectation; declares 4th interim dividend of 66sen per share. Challenging FY12 outlook due to high illicit trade and shrinking market size. Maintain Hold for yields.
Source: HwangDBS Research 17 Feb 2012
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