KUALA LUMPUR (Nov 3): Maybank Investment Bank Research has upgraded GUINNESS ANCHOR BHD [] to a Buy with a marginally higher target price of RM11.50 (from RM11.30) on raised earnings.
It said on Thursday that GAB’s first quarter net profit for the period ended Sept 30 (1QFY12) of RM55.2 million (+42.7% YoY, 89.9% QoQ) were broadly above expectations.
Maybank Research said revenue hit a new record of RM445 million and margins expanding further.
“What is positive is that Guinness would appear to be gaining market share in the malt liquor market and with decent gross yields of about 5.6% in FY12 to boot, we upgrade our call to a Buy with a marginally higher target price of RM11.50 (from RM11.30) on raised earnings,” it said.
The research house said the 1QFY12 net profit accounted for about 26% of its full-year forecast and this is fairly strong, considering the fact that 2Q and 3Q are typically the seasonally better quarters for earnings. 1Q12 revenue growth was an impressive 21% YoY (+27% QoQ) to RM444.6m (+21.3% YoY, +27.5% QoQ).
It said on Thursday that GAB’s first quarter net profit for the period ended Sept 30 (1QFY12) of RM55.2 million (+42.7% YoY, 89.9% QoQ) were broadly above expectations.
Maybank Research said revenue hit a new record of RM445 million and margins expanding further.
“What is positive is that Guinness would appear to be gaining market share in the malt liquor market and with decent gross yields of about 5.6% in FY12 to boot, we upgrade our call to a Buy with a marginally higher target price of RM11.50 (from RM11.30) on raised earnings,” it said.
The research house said the 1QFY12 net profit accounted for about 26% of its full-year forecast and this is fairly strong, considering the fact that 2Q and 3Q are typically the seasonally better quarters for earnings. 1Q12 revenue growth was an impressive 21% YoY (+27% QoQ) to RM444.6m (+21.3% YoY, +27.5% QoQ).
