$NESTLE / 4707 (NESTLE (MALAYSIA) BERHAD)
Research by CGS
Hold – TP RM119.50

“2Q24 results weak; better 2H24F ahead"

■ 2Q24 core net profit of RM94m (-48% yoy) brought 1H24 core net profit to RM300m (-20.6% yoy) at 38%/39% of our/Bloomberg consensus FY24 ests.
■ Generous cash handouts as part of the RON95 subsidy rationalisation initiative in 2H24 should spur revenue recovery in 2H24F, in our view.
■ Hold call maintained, as its rich 35.3x FY25F P/E valuation caps any upside from the improved demand outlook into FY25F.

Analyst:
Prem JEARAJASINGAM
prem.jearajasingam@cgsi.com