Heineken Malaysia Berhad

Suddenly everyone just like sinful stocks
$HEIM / 3255 (HEINEKEN MALAYSIA BERHAD)
$GENM / 4715 (GENTING MALAYSIA BERHAD)
$GENTING / 3182 (GENTING BERHAD)

$HEIM / 3255 (HEINEKEN MALAYSIA BERHAD)
Research by Maybank

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)

$HEIM / 3255 (HEINEKEN MALAYSIA BERHAD)

$HEIM / 3255 (HEINEKEN MALAYSIA BERHAD)
Research by HLIB
BUY – TP RM30.71

"Decent performance”

Heineken reported 6MFY24 core net profit of RM213.6m (+6.6% YoY), which met our/consensus expectation, accounting for 53% of full year forecasts. Notably, Heineken recorded low single-digit growth in beer sales volume YTD, which is in line with our narrative of a recovery in sales volume. Going into 2H24, we expect this trend to continue, supported by a gradual improvement in labor market conditions and a continued influx of tourist arrivals. The appreciation of the ringgit against the USD should also help alleviate Heineken’s cost pressures. Maintain BUY rating with an unchanged 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

$HEIM / 3255 (HEINEKEN MALAYSIA BERHAD)
Research by Maybank
BUY – TP RM 28.20

"2Q24: Good effort”

HEIM’s 2Q24 results met our expectations. Meaningful sales recovery in the 2H24 may continue to be hindered by HEIM’s product affordability and pressure on consumer disposable income. However, any cost savings from favourable FX and potentially higher product demand from tourism could be a positive surprise. Our earnings estimates are unchanged. Maintain BUY with a DCF-TP of MYR28.20 (WACC: 7%, LTG: 3%).

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

$HEIM / 3255 (HEINEKEN MALAYSIA BERHAD)
Research by RHB
BUY – TP RM 29.60

"Stable Earnings In a Tough Market; Maintain BUY”

Heineken Malaysia’s 1H24 results met our expectations but outperformed Streets’. Demand stickiness, rising tourist arrivals, and price increases should sustain earnings momentum going forward, on top of the strengthening MYR and continued clampdown on illicit trade. Current valuation looks undemanding at -1.5SD over the 5-year mean considering the solid earnings delivery notwithstanding the subdued consumer sentiment, diminished regulatory risks with political stability, and generous dividend payout.

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

$HEIM / 3255 (HEINEKEN MALAYSIA BERHAD)
Research by CGS
ADD – TP RM28.85

"Good 1H24 with consumption boost ahead”

■ Heineken’s 2Q24 net profit of RM91m (+0.7% yoy) brought its 1H24 net profit to RM213.6m, representing 52/53% of our/Bloomberg cons FY24F estimates.
■ Generous cash handouts and higher tourist arrivals should spur demand in 2H24F and FY25F, lifting profits and driving a re-rating of Heineken’s shares.
■ Its FY25F P/E of 15.2x is well below its 18x mean (since 2009) with a healthy 6.2% FY24F dividend yield to boot. Maintain Add.

Analyst:
Prem JEARAJASINGAM
prem.jearajasingam@cgsi.com

$HEIM / 3255 (HEINEKEN MALAYSIA BERHAD)
Research by TA
BUY – TP RM28.02

" A Resilient 2QFY24”

Heineken Malaysia Berhad’s (Heineken) 2QFY24 core earnings of RM91.1mn (+0.7% YoY) came in within expectations. Although revenue remained flat (-0.7% YoY), the improvement in earnings was largely attributed to effective cost management, as operating expenses decreased by 1.4% YoY to RM444.1mn. The slight dip in sales was due to weakerconsumer sentiment

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

PETALING JAYA: Heineken Malaysia Bhd, which saw year-on-year growth in its bottomline in the first half of 2024 (1H24), may see better margins in 2H24 following a tapering off of raw material prices.

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

KUALA LUMPUR: Stocks to watch on Tuesday include Telekom Malaysia Bhd (TM), Southern Score Builders Bhd (SSBB), Tenaga Nasional Bhd (TNB), ViTrox Corp Bhd, PUC Bhd, Kinergy Advancement Bhd, Heineken Malaysia Bhd and Country Heights Holdings Bhd.

$HEIM / 3255 (HEINEKEN MALAYSIA BERHAD)

PETALING JAYA: Heineken Malaysia Bhd has appointed Martijn Rene Van Keulen as its new managing director with effect from July 1, 2024.

Change in Boardroom - MR ROLAND BALA

Change in Boardroom - MR MARTIJN RENE VAN KEULEN

General Meetings: Outcome of Meeting

$HEIM / 3255 (HEINEKEN MALAYSIA BERHAD): Record High Profit

Here are some updates on Q1FY24 performance: -

📌 Revenue rose by 7% year-on-year to RM789.17 million, attributed to the effective execution of the Chinese New Year campaign and strategic commercial initiatives during the quarter.
📌 Profit Before Tax (PBT) increased by 12% year-on-year to RM161.29 million, driven by revenue growth and cost management.
📌 Net profit increased by 11% to RM122.48 million, which is aligned with PBT.
📌 Cash position surged by 216% to RM136.77 million, while receivables also saw a 57% increase to RM678.68 million.
📌 Borrowings increased by 152% to RM340 million.
📌 Net Operating Cash Flow (NOCF) recorded a negative RM94.14 million due to RM245.86 million in receivables, deposits, and prepayments.
📌 Despite the positive performance in Q1FY24, the company will maintain a cautious outlook, considering the volatile trading environment and macroeconomic concerns.
📌 HEIM aims to sustain momentum by prioritizing EverGreen strategies, focusing on superior growth, consumer-centricity, cost efficiency, sustainability, digitalization, and fostering a high-performance culture.
📌 Successful marketing investments have been pivotal in driving the company's top-line growth.

KUALA LUMPUR: Analysts say Heineken Malaysia Bhd's sales volume in the coming quarter could be impacted by the absence of pre-price hike boosts that drove demand higher in 1QFY24.

$HEIM / 3255 (HEINEKEN MALAYSIA BERHAD)
Research by TA
Buy – TP RM29.20

“Great Start for FY24"

Reiterate Buy on Heineken with a revised target price of RM29.20/share (previously: RM28.60) post the earnings adjustment and rolling forward our DCF valuation (k: 7.7%, g: 3.0%).

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

$HEIM / 3255 (HEINEKEN MALAYSIA BERHAD)
Research by RHB
Buy (Maintained) – TP RM29.60

“A Solid Start To FY24F; Stay BUY"

Stay BUY and MYR29.60 TP, 25% upside and c.6% yield. Heineken Malaysia’s 1Q24 results were broadly in line, underpinned by robust festive demand. The premiumisation strategy and price increase are likely to support profit margin, thereby offering earnings visibility notwithstanding subdued consumer sentiment on the back of heightened inflationary pressures. With that, we believe its current valuation is undemanding, considering the diminished regulatory risks with the political stability and generous dividend payout.

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

$HEIM / 3255 (HEINEKEN MALAYSIA BERHAD)
Research by Maybank
Buy – TP RM28.20

“1Q24: On track"

HEIM’s 1Q24 results were within expectations. Recent product price adjustments may hurt sales volume in the short-term but consumer spending may gradually increase from financial support measures in 2H24. Our earnings estimates, BUY call and DCF-TP of MYR28.20 (WACC: 7%, LT growth: 3%) are unchanged.

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

$HEIM / 3255 (HEINEKEN MALAYSIA BERHAD)
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

KUALA LUMPUR: Heineken Malaysia Bhd's net profit rose 11.42 per cent to RM122.48 million in the first quarter (Q1) ended March 31, 2024 from RM109.93 million a year ago.

© New Straits Times Press (M) Bhd

PETALING JAYA: Heineken Malaysia Bhd is keeping up its prudent outlook for the year, being mindful of the ongoing volatility in the trading environment and broader macroeconomic factors.

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

$HEIM / 3255 (HEINEKEN MALAYSIA BERHAD)

KUALA LUMPUR: Heineken Malaysia Bhd has named Martijn Rene van Keulen as the company's managing director (MD) effective from July 1. 

© New Straits Times Press (M) Bhd

KUALA LUMPUR: Heineken Malaysia Bhd nominates Martijn Rene van Keulen as managing director succeeding Roland Bala effective July 1.

OTHERSHeineken Malaysia Berhad (HEINEKEN Malaysia or the Company)
Nomination of new Managing Director