[%aqUk%] 
Research by HLIB
Hold (Maintain) -TP of RM9.22

"Dust has yet to settle"

Impacted by ongoing down trading activities and less competitive price points compared to its peers, BAT experienced a significant decline in sales volume for FY23 which dropped by 12.9% vis-à-vis the legal industry's modest 1-ppt decrease. In response to the down trading trend in the combustible cigarette market, BAT has introduced a new value-for-money brand called Luckies to safeguard its market share. Meanwhile, the Vuse brand has shown impressive performance, capturing a strong market share despite being a late entrant to Malaysia’s fragmanted vape space. However, Vuse's contribution to the group remains negligible, accounting for less than 2% of the group's sales. Consequently, we are keeping earnings forecast unchanged. We maintain HOLD call with an unchanged TP of RM9.22.

Analyst:
Sam Jun Kit 
[%jWuh%]

$KLSE-BAT 
Research by HLIB
Hold (Maintain) -TP of RM9.22

"Dust has yet to settle"

Impacted by ongoing down trading activities and less competitive price points compared to its peers, BAT experienced a significant decline in sales volume for FY23 which dropped by 12.9% vis-à-vis the legal industry's modest 1-ppt decrease. In response to the down trading trend in the combustible cigarette market, BAT has introduced a new value-for-money brand called Luckies to safeguard its market share. Meanwhile, the Vuse brand has shown impressive performance, capturing a strong market share despite being a late entrant to Malaysia’s fragmanted vape space. However, Vuse's contribution to the group remains negligible, accounting for less than 2% of the group's sales. Consequently, we are keeping earnings forecast unchanged. We maintain HOLD call with an unchanged TP of RM9.22.

Analyst:
Sam Jun Kit 
jksam@hlib.hongleong.com.my

$BAT / 4162 (BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD)