Highlights
KLSE : NESTLE       NESTLE (M) BHD
Last Price Today's Change   Day's Range   Trading Volume
67.00   -0.10 (0.15%)  66.90 - 67.10  1,800

Overview

Board:Main Market
Sector:Consumer
Avg Volume (4 weeks):4,911
4 Weeks Range:66.40 - 67.60
52 Weeks Range:63.50 - 69.50
Average Price Target:68.32
Price Target Upside/Downside:+1.32
View Price Target Detail

Business Background

Nestle (Malaysia) Berhad is an investment holding company. The Company has two segments: Food and beverages and Others, which include Nutrition and Nestle Professional. Its products are categorized into coffee and beverages, culinary aids/prepared foods, milks, liquid drinks, junior foods, breakfast cereals, chilled dairy, ice cream, chocolate and confectionery, healthcare nutrition, performance nutrition and Nestle professional. The Company is the regional manufacturer for infant cereal. The Company's subsidiaries include Nestl Products Sdn. Bhd., Nestle Manufacturing (Malaysia) Sdn. Bhd., Nestle Asean (Malaysia) Sdn. Bhd. and Nestle Foods (Malaysia) Sdn. Bhd.

  3 people like this.
 
untung up again:)
26/06/2014 17:01
wannabeinvestor Looking forward to see Nestle reach RM100!
27/06/2014 01:13
GGmalaysia before it reach RM100, I'm sure it will touches RM60. it's my own opinion, current price is ok to buy, but at sometimes, when market sentimental has gone bad, anything could be possible. overall it is safe to buy consumer goods
29/06/2014 16:34
Wow123 Mike be split the share and too high.
29/06/2014 16:40
Kent Tan may i know why so many ppl like nestle ? all their earnings are paid for dividends already.. no room for more growth
07/07/2014 01:30
Nihar Mynihar Because their earning are growth year after year.
07/07/2014 12:00
untung Yup..n how many people never heard or taken nescafe, milo or maggi mee before? Solid company..n most imp is its keep expanding..
08/07/2014 12:20
Solsc5079 Is it possible to get higher return than Bank Rate. F.D. of say 4% , calculated by the amount of money invested ?
09/07/2014 17:59
tbm65 possible due to stable and sustainable for long term hoding
19/07/2014 17:39
johnny cash An undervalued brand
Nestle’s earnings have been resilient to economic downturns in the past.
We believe that it will continue to deliver strong earnings, thanks to its
solid management, strong brand name and necessity products.

We increase our conservative
long-term growth assumption in our
DCF-based valuation, which raises
our target price. At our new target
price, Nestle is valued at 28.5x CY15
P/E, 15% discount to Nestle India
which we think is fair after
considering that Malaysia is lack of
investable consumer stocks and given
its slower earnings growth but
stronger ROE. We also think that it
should trade at least on par with F&N
Holdings although it has higher beta.
We upgrade the stock from Hold to
Add as we think that the stock is
undervalued currently.
Sailed through ups and
downs
Nestle’s net profit has been growing
almost consistently since 2005,
thanks to its strong global brand
name and large market share in
Malaysia. Although its 1QFY14 net
profit dropped 0.5% yoy, the drop was
due to a timing difference in A&P
expenses incurred and not a cause for
concern. Furthermore, domestic
demand for its products remained
strong and was its sole topline growth
(+3.7% yoy) driver in 1QFY14 as
export sales weakened on lower sales
to affiliates.
Resilience should stay
Based on its solid track record, we are
confident that it will continue to
deliver good results, even during
tough times. Nestle has a strong
brand name and sells necessities
which should be least affected by any
slowdown in consumer spending. To
boost sales, Nestle will continue to
invest heavily in its branding and
market positioning. Its A&P focus
will shift from television advertising
to digital platforms as consumers now
spend more time on digital devices
than in front of the television.
Capex to peak this year
Nestle will be spending about
RM280m on capex this year, with the
bulk going to its new Sri Muda
manufacturing plant. This
ready-to-drink manufacturing plant is
set to start operations at the end of
the year. The company is also adding
capacity at its other manufacturing
plants for Kit Kat and noodles to cater
to strong domestic demand for such
products. These plans are on track for
completion by 1H14. After its huge
capex commitment this year, Nestle
guided that its 2015 capex will be
lower.
22/07/2014 08:08


 

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