(HEIM MK/HOLD/RM17.64/Target: RM17.20)

Heineken’s 2Q17 results were within expectations. Sales declined 11.5% yoy on: a) a high base in 2Q16 due to frontloading in anticipation of price hike and Euro 2016, b) weak consumer sentiment, and c) possible erosion in market share by shipment. However, strategic cost management mitigated the impact, resulting in bottom-line growth of 1.2% yoy. We maintain our view that MLM sales volume will be flat in 2017. Maintain HOLD. Target price: RM17.20. Entry price: RM15.50.

Source: UOB Kay Hian Research - 27 Jul 2017