(HEIM MK/HOLD/RM18.38/Target: RM17.20)

Heineken’s 1Q17 results were within expectations. 1Q17 sales declined 12.6% yoy mainly due to frontloading by consumers in 4Q16 from an early Lunar New Year this year. However, strategic cost management and a lower effective tax rate mitigated the impact, resulting in a 3.7% yoy decline in net profit. We maintain our view that MLM sales volume will be relatively weak/flattish in 2017. Maintain HOLD and target price of RM17.20. Entry price: RM15.50.

Source: UOB Kay Hian Research - 13 Apr 2017