(CAB MK/HOLD/RM14.70/Target: RM14.00)

CAB’s 2Q17 results were within expectations. There was strong showing from both its Malaysia and Singapore arms with continued positive impact from effective cost management. Meanwhile, 25%-owned Lion Brewery is still in the red with current utilisation of <50%. We maintain our view that MLM sales volume will be relatively weak/flattish in 2017. Maintain HOLD and target price of RM14.00, implying 18.1x 2018F PE. Entry price: RM13.00.

Source: UOB Kay Hian Research - 17 Aug 2017