Bursa Malaysia Stock Watch

JT International: Maintain Hold - Battle of the VFM

kltrader
Publish date: Wed, 29 Feb 2012, 09:50 AM
kltrader
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Gloomy outlook. JTI is facing intensified competition in the VFM segment from rivals who are armed with new innovative products, despite JTI's strengthening marketing efforts. Its flattish market share is exacerbated by a high level of illicits and declining cigarette consumption. We maintain our Hold on JTI for the likely special dividend payout, but with a lower DCF-based TP of RM6.20 (-10%). Net cash accounts for RM1 of our TP.


Maybank Research 29 Feb 2012

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