Nestlé (Malaysia) Bhd [%fbeh%] 
Research by Kenanga
marketperform: Target Price: RM143.60

"Margins Indigestion"

While top-line remained robust, margins continued to be challenging amidst volatile commodity prices and operational costs. Moving ahead, top-line will largely be cushioned by solid in-home consumption, pipeline of new products and brand presence. While the Group stay robust and positioned for improvement, headwinds from challenging margins remain. Reiterate MARKET PERFORM - as capital upside appears limited, with poor dividend yields - with TP at RM143.6 on an unchanged 52x FY22E PER. 

Ahmad Ramzani Ramli 
E [%YRdL%]

Nestlé (Malaysia) Bhd $KLSE-NESTLE 
Research by Kenanga
marketperform: Target Price: RM143.60

"Margins Indigestion"

While top-line remained robust, margins continued to be challenging amidst volatile commodity prices and operational costs. Moving ahead, top-line will largely be cushioned by solid in-home consumption, pipeline of new products and brand presence. While the Group stay robust and positioned for improvement, headwinds from challenging margins remain. Reiterate MARKET PERFORM - as capital upside appears limited, with poor dividend yields - with TP at RM143.6 on an unchanged 52x FY22E PER. 

Ahmad Ramzani Ramli 
E ahmadramzani@kenanga.com.my

$NESTLE / 4707 (NESTLE (MALAYSIA) BERHAD)