HOME     ABOUT US SERVICES STAFF MEMBERS RESEARCH ACTIVITIES PHOTO GALLERY
 
 
 
  .: Links
  WHO Collaborating Centre
  Products
  Toxicology Laboratory
  Publication/Production
  Collaborators
  News & Health Information
  Berita Kesihatan
  PRN Bulletins & Articles
  Malaysian Drug & Poison Net
  United For Tobacco Free
  Hiroshima On My Mind
  Articles by Founding Director
  Posters & Brochures
 
 
 
Contact Us
National Poison Centre
Universiti Sains Malaysia
11800 Penang
Malaysia
 
Tel: +604-657 0099
Fax: +604-656 8417
 
Email: prnnet@usm.my
 
 

Tobacco News
   
Mayban Research: Hold on BAT at RM35
  By: Michelle Kuan
Source: The Edge (my), 2002-04-24, via tobacco.org
   
 

Mayban Securities Research has maintained its hold recommendation on British American Tobacco (Malaysia) Bhd at RM35.00 with a 12-month target price of RM37.

The research house said BAT was maintaining its supremacy in the industry, through Dunhill. With continued brand awareness and strong financial footing, it did not see any threat to BAT's position in the immediate term.


"Although the stock has under performed the KLCI by 5.4 per cent year-to-date, we do not expect a sharp re-rating due to its defensive nature," it said.
 
Mayban Research said BAT's first quarter results in terms of improved turnover and earnings were mainly due to higher sales volume. Domestic sales remained flat, while contract manufacturing and duty-free sales declined.
 
BAT has a 68 per cent market share. It sold 4.8 billion sticks in the first quarter, which represented a four per cent quarter-on-quarter improvement but a five per cent decline compared to 1Q01.
 
Dunhill maintained its lead with a 46.5 per cent market share, while volume of Kent continued to improve with a market share of 1.7 percent. Perilly's market share remained at six per cent.
 
Mayban Research said BAT was trading at prospective PER of 15.7 times, on par with JT International's 15.9 times. Both BAT and JTI offer similar dividend yield of six per cent.
 
It pegged BAT's target price at RM37 in line with its discounted cash-flow value. This represents a 5.7 per cent upside potential from the current price.


     
  Back
   
 
 

 
 
Copyright © National Poison Centre, USM 2008. All Rights Reserved