$BAT / 4162 (BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD)
Research by CGS
ADD – TP RM9.77

" 2Q24 earnings improvement a good sign"

■ BAT’s 2QFY24 core net profit of RM36.2m led to 1HFY24 core net profit coming in below our/Bloomberg consensus’ estimates at 35%/39%.
■ Improved economic activity and migration away from combustible products will help to support BAT’s earnings decline throughout FY24F, in our view.
■ Reiterate Add with unchanged GGM-based TP of RM9.77. At 10.6x FY26F P/E, valuations are undemanding, supported by FY24-26F yields of 8-9%

Analyst:
LEW Cheng Wei
chengwei.lew@cgsi.com

Prem JEARAJASINGAM
prem.jearajasingam@cgsi.com