Bursa Malaysia Stock Watch

Guinness Anchor: Upgrade to Buy - A tribute to froth and body

kltrader
Publish date: Fri, 24 Feb 2012, 10:22 PM
kltrader
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Results in line, upgrade to Buy, raising TP. 1HFY12 net profit of RM121m (+17% YoY) was boosted by sales growth on stable margins. We note Guinness' growing cash pile and would not rule out larger dividends, which could be boosted by its recent debt issuance. Improving market penetration and decent yields (net: 4.9%) coupled with possible further cash management initiatives provide upside impetus to the stock price. We raise our DCF-based TP to RM13.50.

Maybank Research - 24 Feb 2012

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