(CAB MK/HOLD/RM14.00/Target: RM14.00)

CAB’s 3Q16 results missed expectations. The underperformance came from: a) a weak top-line from Malaysia on weak consumer sentiment, and b) higher A&P expenses in both Malaysia and Singapore arms to spur sales. Its associate, Lion Brewery, was back in the red due to a massive flood. 4Q16 outlook remains subdued due to still-weak consumer sentiment. We cut our 2016-18 earnings forecasts by 6- 9.5%. Maintain HOLD with a lower target price RM14.00, implying 17.5x 2017F PE. Entry price: RM13.00.

Source: UOB Kay Hian Research - 29 Nov 2016