Carlsberg Brewery Malaysia Berhad

Top 10 RoE Companies in Bursa Malaysia.

Here are the top 10 companies with the highest RoE (Return on Equity). This ranking is based solely on RoE, a financial metric that measures a company's profitability relative to its shareholders' equity. RoE indicates how efficiently a company is using its equity to generate profits and is often used to benchmark companies within the same industry. However, it's important to be cautious, as RoE alone doesn’t provide a full picture of a company’s financial health and Stockbitors must remember to analyze companies from a variety of angles to get a better understanding of your investments!

$CARLSBG / 2836 (CARLSBERG BREWERY MALAYSIA BERHAD) $HEIM / 3255 (HEINEKEN MALAYSIA BERHAD) $NESTLE / 4707 (NESTLE (MALAYSIA) BERHAD) $SEM / 5250 (7-ELEVEN MALAYSIA HOLDINGS BERHAD) $UCHITEC / 7100 (UCHI TECHNOLOGIES BERHAD)

$CARLSBG / 2836 (CARLSBERG BREWERY MALAYSIA BERHAD)
Research by CGS
ADD – TP RM22.87

" Improving macro for better outlook”

■ We reiterate our Add call on Carlsberg Malaysia post its 2Q24 results with a higher GGM-derived target price of RM22.87 (previously RM22.70).
■ EPF Account 3 withdrawals, increased tourism, and upcoming civil servant salary increases point to an improved demand outlook in Malaysia.
■ Its FY25F P/E of 15.8x is undemanding vs. its historical trading range and consumer staple peers, with a healthy 5.2% FY24F dividend yield.

Analyst:
Prem JEARAJASINGAM
prem.jearajasingam@cgsi.com

$CARLSBG / 2836 (CARLSBERG BREWERY MALAYSIA BERHAD)
Research by RHB
BUY– TP RM22.20

" Premiumisation – The Name Of The Game; Keep BUY”

Carlsberg Brewery’s 1H24 results were within expectations on solid topline growth momentum. Demand stickiness, rising tourist arrivals, and price increases should sustain the earnings momentum going forward, on top of the strengthening MYR and continuous clampdown on illicit trades. With that, the current valuation looks undemanding, at -1.5SD from its 5-year mean considering the solid earnings delivery notwithstanding the subdued consumer sentiment, diminished regulatory risks with the political stability, and generous dividend payout.

Analyst:
Soong Wei Siang
soong.wei.siang@rhbgroup.com

$CARLSBG / 2836 (CARLSBERG BREWERY MALAYSIA BERHAD)
Research by HLIB
BUY– TP RM30.12

" Sapporo gaining traction”

Carlsberg reported 1H24 core PATAMI of RM170.7m (-1.2% YoY) which aligned with our/consensus expectations at 50%/51%. Notably, the Sapporo brand that launched earlier this year has gained strong traction and is now larger than its predecessor Asahi in Malaysia. The brand is also performing well in the Singapore market, although it has yet to fully recover the volume lost from Asahi’s delisting due to Asahi’s larger market share there. The share profit from Lion Brewery surged by 59.4% YTD. Maintain BUY with an unchanged TP of RM30.12

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

$CARLSBG / 2836 (CARLSBERG BREWERY MALAYSIA BERHAD)
Research by Maybank
BUY – TP RM 21.00

" 2Q24: In-line”

CAB’s 2Q24 results met our expectations. Sales volume in sequential quarters may remain subdued until consumer spending picks up towards the year-end. Following CAB’s price adjustment in Apr 2024, it also has more room to defend margins if input costs unexpectedly increase in 2H24. Our earnings estimates, BUY call and DCF-TP of MYR21.00 (WACC: 8%, LT: 3%) are unchanged with decent yields of 5+%.

Analyst:
Jade Tam
jade.tam@maybank-ib.com

$CARLSBG / 2836 (CARLSBERG BREWERY MALAYSIA BERHAD)
Research by TA
Buy – TP RM24.10

" 2QFY24 Results Within Expectation”

Maintain our Buy recommendation on Carlsberg with a revised target price of RM24.10/share, after incorporating a 3% premium to account for the 4-star ESG initiative (k: 8.1%, g: 3.0%).

Analyst:
Liew Yi Jiet
yjliew@ta.com.my

$CARLSBG / 2836 (CARLSBERG BREWERY MALAYSIA BERHAD)

Put money in bank no use
Go gamble at $GENM / 4715 (GENTING MALAYSIA BERHAD) $BJTOTO / 1562 (BERJAYA SPORTS TOTO BERHAD) $MAGNUM / 3859 (MAGNUM BERHAD)
If Recession coming, People sad, need drink more
$CARLSBG / 2836 (CARLSBERG BREWERY MALAYSIA BERHAD) $HEIM / 3255 (HEINEKEN MALAYSIA BERHAD)
Lets gooooo

$CARLSBG / 2836 (CARLSBERG BREWERY MALAYSIA BERHAD)
Research by Maybank
Buy – TP RM21.00

“Weathering through"

CAB’s overall volume growth may be hindered by ongoing challenges in consumer sentiment, but given its recent product price increase and more favourable raw material ASPs, the group has more breathing room to defend margins. Hence, we keep our earnings estimates. Maintain BUY with an unchanged DCF-TP of MYR21.00 (WACC: 8%, LT growth: 3%) with decent FY24E yield of 4.7%.

Analyst:
Jade Tam
jade.tam@maybank-ib.com

$CARLSBG / 2836 (CARLSBERG BREWERY MALAYSIA BERHAD): Chinese New Year Sales

Here are some updates on Q1FY24 performance: -

📌 YoY revenue increased by 9.9% to RM725.8 million.
📌 Malaysia remains the primary revenue contributor, accounting for 74.6% of the total revenue. Malaysian revenue surged by 15.4% to RM541.4 million, attributed to an extended selling period before the 2024 Chinese New Year and increased trade purchases in March ahead of price hikes.
📌 Singapore revenue declined by 3.4% to RM184.4 million, impacted by the loss of Asahi sales but partially offset by higher Chinese New Year volume.
📌 The company's share of profit in its associated company, Lion Brewery (Ceylon), soared by 134.8% to RM7.6 million due to improved business performance and the strengthening of the Sri Lanka Rupee.
📌 Net profit increased by 3.4% to RM87.9 million, driven by higher profits in Malaysia and an increase in share profit from Lion Brewery.
📌 Dividend of 22 sen has declare in this quarter.
📌 Management expects trade volumes from this period to rebalance in the second quarter.
📌 The company remains committed to its Accelerate SAIL strategic priorities, focusing on enhancing its premium portfolio and executing brewery transformation. However, it remains cautious due to uncertain global economic conditions, including inflationary pressures, high interest rates affecting consumer spending, and currency fluctuations.

$CARLSBG / 2836 (CARLSBERG BREWERY MALAYSIA BERHAD)
Research by TA
Buy – TP of MYR 24.50

“1QFY24 Driven by Better Performance in Malaysia”

We maintain Buy on Carlsberg with a revised target price of RM24.50/share (previously: RM22.90/share) post the earnings adjustment and rolling forward our DCF valuation (k: 7.8%, g: 3.0%).

Analyst(s):
Liew Yi Jiet
yjliew@ta.com.my

$CARLSBG / 2836 (CARLSBERG BREWERY MALAYSIA BERHAD)
Research by RHB
Buy – TP of MYR 22.20

“A Strong Start To FY24F; Stay BUY”

Carlsberg Brewery’s 1Q24 results met expectations on festive demand and cost discipline. Steady margin underpinned by its premiumisation strategy and price increases will be the main earnings growth driver as consumer sentiment is likely to remain subdued on elevated inflationary pressures. Its current valuation is undemanding considering the diminished regulatory risks with the political stability as well as decent dividend yield.

Analyst(s):
Soong Wei Siang
soong.wei.siang@rhbgroup.com

$CARLSBG / 2836 (CARLSBERG BREWERY MALAYSIA BERHAD)
Research by HLIB
Buy – TP of MYR 30.12

“Record high revenue”

Carlsberg reported 1Q24 core net profit of RM89.2m (+6.2% QoQ, +3.6% YoY) which aligns with our/consensus expectation, accounting for 27% of full year forecast. As anticipated, 1Q24’s sales was fuelled by the longer CNY sales period and pre-hike sales boost. Additionally, the share profit from Lion Brewery remained resilient. We maintain BUY with an unchanged TP of RM30.12. Considering that Carlsberg is trading just 10% away from its 2020 low, we believe the risk and reward profile for the stock is attractive, thus advocating a buy-onweakness stance.

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

$CARLSBG / 2836 (CARLSBERG BREWERY MALAYSIA BERHAD)
Research by Maybank
Buy – TP of MYR 21.00

“1Q24: Within expectations”

CAB’s 1Q24 results met our expectation. We expect sequential earnings to ease given higher product prices and the lack of festivities to drive sales momentum. Improvement in product demand may arise in 2H24 on expectation for better consumer sentiment from financial support measures and potentially higher tourist arrivals. Our FY24E-FY26E earnings estimates are nudged up by +1% p.a. on housekeeping. Maintain BUY with a MYR21.00 DCF-TP (WACC: 8%, LT growth: 3%) with decent DYs of c.5%.

Analyst(s):
Jade Tam
jade.tam@maybank-ib.com

$CARLSBG / 2836 (CARLSBERG BREWERY MALAYSIA BERHAD)

CARLSBG - Notice of Book Closure

PETALING JAYA: Carlsberg Brewery Malaysia Bhd continues to remain mindful of the uncertain global economic outlook due to the continued inflationary pressures, high interest rates impacting consumer spending and currency fluctuations.

PETALING JAYA: Carlsberg Brewery Malaysia Bhd continues to remain mindful of the uncertain global economic outlook, due to the continued inflationary pressures, high interest rates impacting consumer spending and currency fluctuations.

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

First Interim Dividend

$CARLSBG / 2836 (CARLSBERG BREWERY MALAYSIA BERHAD)
Research by HLIB
Buy (Maintain) – TP RM30.12

“Valuation at happy hour pricing"

Despite the absence of sales from the Asahi brand, Carlsberg's 1Q24 is poised to benefit from multiple tailwinds, including (i) longer CNY sales period compared to FY23; (ii) increased purchases before the price hike; and (iii) expected stronger performance in its Singapore operations amidst the "Swiftonomics" effect. Additionally, we believe that the sales void resulting from the delisting of Asahi will swiftly be filled by the newly-introduced Sapporo brand. We maintain BUY rating with a TP of RM30.12. Given that Carlsberg is trading just 8% away from its 2020 low, we reckon the risk and reward for the stock to be attractive, thus advocate a buy-on-weakness stance.

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

Carlsberg Brewery Malaysia Bhd will be reinvesting in its brands to safeguard the future of the business amid the tough business environment.

$CARLSBG / 2836 (CARLSBERG BREWERY MALAYSIA BERHAD)

General Meetings: Outcome of Meeting

PETALING JAYA: The hike in prices by local breweries Heineken Malaysia Bhd and Carlsberg Brewery Malaysia Bhd will likely to result in alleviated operational cost pressure, say analysts.

Annual Report & CG Report - 2023

Circular to shareholders in relation to the Proposed Renewal of Shareholders' Mandate for Recurrent Related Party Transaction of a Revenue or Trading Nature and Proposed New Shareholders' Mandate for Additional Recurrent Related Party Transactions of a Revenue or Trading Nature

CARLSBG - Notice of Book Closure

Final Dividend

General Meetings: Notice of Meeting