A good year as expected. Nestle's full-year net profit of RM456m, up 17% YoY, was within our and consensus expectations. Growth was primarily sales-driven, while margins were stable. Although we continue to like Nestle for its strong franchise, valuations are not cheap, with the stock trading at a prospective 2012 PER of 26x, while yields are just about fair at 3.6%. Our Sell call is maintained, but with a raised target price of RM52.40 on rolling forward our DCF valuations.

Maybank Research - 24 Feb 2012

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