British American Tobacco (Malaysia) Sdn Bhd's (BAT) lower profit after tax of RM180.6 million for the fourth quarter of last year was within expectations, says HwangDBS Vickers Research.
HwangDBS, in a research note here today, said the fourth quarter's profit after tax was reduced by 1.1 per cent, on a year-on year (y-o-y) basis, with shipment volume at 0.7 per cent higher to 2.04 billion sticks y-o-y.
It noted that for the financial year ended 2011, the company's y-o-y profit after tax declined by 1.6 per cent to RM719.6 million on the back of a 4.1 per cent y-o-y increase in the company's revenue.
Moving forward, the research firm said 2012 would be a challenging year for BAT as the illicit trade was firm at 36.1 per cent last year against 36.3 per cent in 2010 and its market size had shrunk by 3.2 per cent in 2011.
Meanwhile, HwangDBS has maintained a "hold" call for the company with a target price of RM46.60 based on BAT's announcement for its fourth interim dividend of 66 sen per share. -- Bernama
HwangDBS, in a research note here today, said the fourth quarter's profit after tax was reduced by 1.1 per cent, on a year-on year (y-o-y) basis, with shipment volume at 0.7 per cent higher to 2.04 billion sticks y-o-y.
It noted that for the financial year ended 2011, the company's y-o-y profit after tax declined by 1.6 per cent to RM719.6 million on the back of a 4.1 per cent y-o-y increase in the company's revenue.
Moving forward, the research firm said 2012 would be a challenging year for BAT as the illicit trade was firm at 36.1 per cent last year against 36.3 per cent in 2010 and its market size had shrunk by 3.2 per cent in 2011.
Meanwhile, HwangDBS has maintained a "hold" call for the company with a target price of RM46.60 based on BAT's announcement for its fourth interim dividend of 66 sen per share. -- Bernama
