[%chxC%]
Research by HLIB
Buy (Maintain) – TP RM30.71

“A strong start"

Heineken reported 1Q24 core net profit of RM122.5m (+23.6% QoQ, +11.4% YoY), which met our/consensus expectation, accounting for 30% of full year forecast. Sales volume exhibited mid-single-digit growth, driven primarily by Tiger and Heineken beers, fuelled by CNY sales and pre-hike boosts. Looking forward, the absence of such pre-hike boosts in the upcoming quarter may lead to weaker performance. Following annual report updates, we tweaked our FY24F and FY25F earnings forecasts by 2.6% and 1.9%, respectively, and introduced FY26F earnings. We maintain a BUY rating on Heineken, with a higher TP of RM30.71, based on a PE multiplier of 23.0x applied to its FY24F EPS of 133.5 sen.

Analyst:
Sam Jun Kit
[%PKhz%]

$KLSE-HEIM
Research by HLIB
Buy (Maintain) – TP RM30.71

“A strong start"

Heineken reported 1Q24 core net profit of RM122.5m (+23.6% QoQ, +11.4% YoY), which met our/consensus expectation, accounting for 30% of full year forecast. Sales volume exhibited mid-single-digit growth, driven primarily by Tiger and Heineken beers, fuelled by CNY sales and pre-hike boosts. Looking forward, the absence of such pre-hike boosts in the upcoming quarter may lead to weaker performance. Following annual report updates, we tweaked our FY24F and FY25F earnings forecasts by 2.6% and 1.9%, respectively, and introduced FY26F earnings. We maintain a BUY rating on Heineken, with a higher TP of RM30.71, based on a PE multiplier of 23.0x applied to its FY24F EPS of 133.5 sen.

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